QUESTION 3 A non-current asset was incorrectly treated as an expense and charged to profit or loss. What effect did this have on the accounts? Select one answer.

a)Expenses were understated, and non-current assets overstated

b)Expenses were overstated, and non-current assets overstated

c)Expenses were understated, and non-current assets understated

d)Expenses were overstated, and non-current assets understated