If a Company Capitalizes Costs That Should Be Expensed,how Is

question 99

Multiple Choice

If a company capitalizes costs that should be expensed,how is its income statement for the current period impacted?

• A)Net income will be lower than it should be.
• B)Revenues will be lower than they should be.
• C)Expenses will be lower than they should be.
• D)Assets will be lower than they should be.

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Definitions:

Exponentiation

The operation of raising one number (the base) to the power of another (the exponent), a fundamental mathematical operation.

System of Equations

A set of two or more equations that share two or more unknowns.

Coefficient

A numerical or constant factor before and multiplying the variable in an algebraic expression.

System of Equations

A set of two or more equations with the same variables, which are solved simultaneously to find their common solution.