Description
Partner A invested in furniture that was recorded at a value below the fair market value. This error would cause the period’s
A. net income to be overstated.
B. end capital to be overstated.
C. end assets to be overstated.
D. end assets to be understated.
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Explanation & Answer
when an item is treated improperly then it affects the total value of the asset such that it will be overstated.The correct answer is c
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