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The effect of overstating revenue expenditure in the profit and loss account is that the

Accounts - Principles of Accounts
JAMB 2016

The effect of overstating revenue expenditure in the profit and loss account is that the

  • A. opening stock will be increased
  • B. net profit will be understand
  • C. net profit will be overstead
  • D. opening stock will be decreased
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Correct Answer: Option B
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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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
Your School's Whatsapp Group - Join Us now
Post UTME Past Questions Agent
WAEC and NECO CBT App for Mobile Devices - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
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