Which One of the Following Ratio and Trend Analysis Procedures

question 110

Multiple Choice

Which one of the following ratio and trend analysis procedures might identify a possible misstatement of expensing amounts that should be capital items?

• A) Compare 'depreciation expense divided by gross property, plant, and equipment cost' with previous years.
• B) Compare 'monthly or annual repairs and maintenance, supplies expense, small tools expense, and similar accounts' with previous years.
• C) Compare 'accumulated depreciation divided by gross property, plant, and equipment cost' with previous years.
• D) Compare 'gross property, plant, and cost divided by some method of production' with previous years.

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Definitions:

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