A Company Incorrectly Records Revenue Expenditures as Capital Expenditures on Its

question 100

Multiple Choice

A company incorrectly records revenue expenditures as capital expenditures on its books. As a result, which of the following will be true?

• A) Net income will be overstated for the year.
• B) Owner's equity will be understated at year-end.
• C) Total assets will be understated at year-end.
• D) None of the above answers are correct.

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