Jake sold a non-current asset which was not fully depreciated. He mistakenly recorded this by debiting the bank account and crediting the sales account with the proceeds.
What was the effect of this error?
1- Assets were overstated.
2- Assets were understated.
3- Profit was overstated.
4- Profit was understated.
1 and 3
2 )
1 and 4
3 )
2 and 3
4 )
2 and 4
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