The gross cost of the entity is understated in such cases; and to recognize an exchange revenue is to recognize a revenue without some or all of the related costs, and hence to understate the entity's net cost of operations.
The total cost of the entity was understated.
The total cost of the entity was overstated.
A dog running near a stream
The girl is at school doing homework.
A young couple is asleep in bed.
The blonde child has frosting on his cheeks
guys are riding bikes
A cat is playing.