Which of the Following Misstatements Would Cause the Net Profit

question 93

Multiple Choice

Which of the following misstatements would cause the net profit margin ratio to be understated?

• A) Capitalizing costs that should have been expensed.
• B) Failing to adjust for depreciation in the current period.
• C) Failing to accrue income taxes incurred but not yet paid for the current period.
• D) Failing to accrue interest earned but not yet collected for the current period.

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An independent, not-for-profit organization that accredits and certifies healthcare organizations and programs in the United States to ensure quality and safety standards.

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