A-LevelAccountingAccounting for non-current assets9706/12 · Oct/Nov 2016 · Q81 Mark
An item of capital expenditure has been incorrectly treated as revenue expenditure in the financial statements of a business. What is the effect of this error on the financial statements of the business? assets profit A overstated overstated B overstated understated C understated overstated D understated understated
Aoverstated overstated
Boverstated understated
Cunderstated overstated
Dunderstated understated
✓ Correct answer
D: understated understated
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