A Company's Accountant Capitalizes a Payment That Should Be Recorded

question 38

Multiple Choice

A company's accountant capitalizes a payment that should be recorded as an expense. Which of the following is true?

• A)Revenue is overstated.
• B)Expenses are overstated.
• C)Assets are overstated.
• D)Liabilities are overstated.

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Definitions:

Appointment Book

A book or electronic system used to schedule, organize, and keep track of appointments.

Legal Record

Official documentation or evidence that is recognized and possibly kept in a court of law or relevant legal authority.

Diagnosis

Determining the type of a disease or issue through analyzing the symptoms.

Surgery

A medical procedure involving an incision with instruments, primarily performed to repair damage, remove diseased tissues, or improve bodily function.