Accounting for IGCSE & O level - Accounting Procedures (Section 9 - No. 12)

What is the impact of understating the value of non-current assets?
Profit will be overstated.
The financial position will be overstated.
Profit will be understated.
The financial position will be understated.

Explanation

Understating the value of non-current assets makes the financial position of the business seem weaker.

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