Nobells Corp.has acquired land and paid an amount of $500 as brokerage to acquire the land.However,the company's accountant has recorded the $500 as a revenue expenditure.What is the effect of this error?
A) net income is understated by $500
B) liabilities are overstated by $500
C) revenue is overstated by $500
D) assets are overstated by $500
Correct Answer:
Verified
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