Question

Ms Morris purchases $1 000 worth of fur-
niture for office use and entered it in the
journal as purchases. How will this error
affect her Balance Sheet?
(a)Fixed assets and net profit will be
decreased by $1 000.
(b)Fixed assets and net profit will be
increased by $1 000.
(c)Current assets and net profit will be
increased by $1 000.
(d)Current assets and net profit will
NOT be affected.

Answer 1

Answer:

(c) Current Assets and Net profit will be increased by $1,000.