An accrued expense amounting to 18,000 was overlooked when ascertaining the profit for the year. The effect

Question:

An accrued expense amounting to £18,000 was overlooked when ascertaining the profit for the year. The effect of this error is that:
(a) Net profit is overstated and liability understated
(b) Net profit as well as liability are overstated
(c) Net profit is not affected but liability is understated
(d) Net profit as well as liability are understated

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