When preparing its financial statements, if a business deliberately underestimates the allowance required to cover doubtful debts, it would be:

(a) OA trade debt of £12,400 is to be written off as bad and the Allowance for doubtful debts increased from £38,200 to £41,900. The amount to be written off against the profit for the year as bad and doubtful debts would be:verstating its performance and understating its liability

(b) Overstating its performance as well as its liability

(c) Overstating its performance and understating its assets

(d) Overstating its performance as well as its assets