If $1,000 is shown as being added to the
Purchases account instead of being added to a
non-current asset what would be the effect?
Select one:
O a.
Both gross profit and net profit would be
overstated.
O b.
Net profit only would be overstated.
C.
Both gross profit and net profit would be
understated.
O d.
Net profit only would be understated.
