If a Client Expensed the Acquisition Cost of Some Assets

question 63

Multiple Choice

If a client expensed the acquisition cost of some assets that should have been capitalized and depreciated them over their useful lives, which of the following would be incorrect?

• A) A qualified opinion would be appropriate.
• B) The opinion paragraph should be modified to include language such as: "except for the effects of not capitalizing the acquisition costs of some assets.."
• C) An explanatory paragraph should include the effects of the subject matter of the qualification, where practicable.
• D) An explanatory paragraph should be modified to include language such as: "subject to the qualified act.."

---

Definitions:

React

To undergo a chemical change or transformation in response to another substance or condition.

Sodium Chloride

The chemical name for table salt, a compound with the formula NaCl, widely used as a condiment and preservative.

Sodium

A soft, silver-white, highly reactive metal belonging to the alkali metal series in the periodic table, denoted by the symbol Na.

Calcium Carbonate

A white, insoluble solid (CaCO3) occurring naturally as chalk, limestone, marble, and forming the shells of sea creatures.