JAMB Accounting 2017 Objective — Question 17
Question 17 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2017 Objective paper, with the correct answer and a full explanation.
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The effect of overstating revenue expenditure in the profit and loss account is that the
- A. A. opening stock will be increased
- B. B. net profit will be understatedCorrect
- C. C. net profit will be overstated
- D. D. opening stock will be decreased
Explanation
Overstating expenses in the profit and loss account causes the net profit for the period to be understated.
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