A firm has not recorded the bad debts by mistake. Which of the followi – McqOptions

MCQOPTIONS

1.	A firm has not recorded the bad debts by mistake. Which of the following is the effect of bad debt ommission?
A.	Net profit would decrease
B.	Net profit would increase
C.	Gross profit would overstate
D.	Gross profit would understate
Answer» C. Gross profit would overstate

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