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
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