JAMB - Accounts Principles Of Accounts (2016 - No. 11)
The effect of overstating revenue expenditure in the profit and loss account is that the
opening stock will be increased
net profit will be understand
net profit will be overstead
opening stock will be decreased
Explanation
As a general rule, an increase in any type of business expense lowers profit. overstating expenditure would decrease or understate the net profit
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