Net assets A: Overstated by $90 B: Understated by $90 C: Overstated by $180 D: Understated by $180

The _____ should not be overstated when the two nations are on the verge of conflict.

Mr. Write gives a cash discount of $40 to a customer. The discount is credited to the discounts allowed account.The effect of recording the discount in this way is that profit will be: A: correct B: overstated by $80 C: understated by $80 D: understated by $40