A payment to a supplier has been credited to the supplier’s account and debited to the bank account.

A payment to a supplier has been credited to the supplier’s account and debited to the bank account.

This would result in
A . an understatement of profit and an overstatement of liabilities
B . an understatement of profit and an overstatement of assets
C . an overstatement of profit and an overstatement of liabilities
D . an overstatement of profit and an overstatement of assets

View Answer

Answer: C