Accounting for IGCSE & O level - Accounting Procedures (Section 6 - No. 1)
What are the effects of the following error on a company's financial position: An annual depreciation charge of $4,000 was overlooked
An increase in assets
An increase in liabilities
A decrease in profit
An increase in profit
Explanation
Depreciation decreases profit because it is a business expense.
Comments (0)
