17.11 The accountant at Investotech discovered the following errors after calculating the company's profit for 20X3: (a) A non-current asset costing $50,000 has been included in the purchases account Stationery costing $10,000 has been included as closing inventory of raw materials, instead of stationery expenses (b) What is the effect of these errors on gross profit and net profit? Understatement of gross profit by $40.000 and understatement of net profit by $30,000 Understatement of both gross profit and net profit by $40,000 Understatement of gross profit by $60.000 and understatement of net profit by $50,000 C

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.