89. A firm has not recorded the bad debts by mistake. Which of thefollowing is the effect of bad debt ommission?A. O Net profit would decreaseB. Net profit would increaseC. O Gross profit would overstateD. Gross profit would understate

INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…

firm has not recorded the bad debts by mistake. Which of the ving is the effect of bad debt ommission? Net profit would decrease Net profit would increase Gross profit would overstate Gross profit would understate

firm has not recorded the bad debts by mistake. Which of the ving is the effect of bad debt ommission? Net profit would decrease Net profit would increase Gross profit would overstate Gross profit would understate

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Completing A Quality Audit

Section: Chapter Questions

Problem 24CYBK

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Question

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

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