Errors cause omission of non-current asset and net understatement of current assets Steps:

• Cheque issued for $200 office equipment recorded as$70 payment only, omitting full asset entry in ledger, understating non-current assets (cost) by $200.
• The $70recordedpaymentisanerroneousdeduction$70.

Why D is correct:

• Omitting the $200 asset entry understates non-current assets by full cost; net cash adjustments ($70 erroneous deduction unoffset by 40 per bank reconciliation principles.

Why the others are wrong:

• A: Current assets affected net by $40 understatement, not no effect.
• B: Non-current assets omit $200 purchase, so understated, not no effect.
• C: Current assets net understated by $40, not overstated by$30.

Final answer: D