The following mistakes were discovered after a statement of financial position had been drawn up. 1. A loan due for repayment in two years’ time had been shown as a current liability. 2. A provision for doubtful debts ought to have been made. What effect will correcting these mistakes have?
- Acurrent assets decrease; current liabilities decrease; non-current liabilities increase; owner’s equity decrease
- Bcurrent assets decrease; current liabilities increase; non-current liabilities decrease; owner’s equity increase
- Ccurrent assets increase; current liabilities decrease; non-current liabilities decrease; owner’s equity increase
- Dcurrent assets increase; current liabilities increase; non-current liabilities decrease; owner’s equity decrease