If an Expenditure Related to a Depreciable Asset Is Incorrectly

question 74

Multiple Choice

If an expenditure related to a depreciable asset is incorrectly treated as a capital expenditure,instead of as a revenue expenditure,which of the following statements is true?

• A)The current year's net income will be lower and future depreciation expense will be higher.
• B)The current year's net income will be higher and future depreciation expense will be lower.
• C)The current year's net income will be higher and future depreciation expense will be higher.
• D)The current year's net income will be lower and future depreciation expense will be lower.

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Definitions:

Platelet Adhesion

The process wherein platelets adhere to damaged blood vessel walls, initiating clot formation.

Coagulation

Process of changing from liquid to solid, especially of blood; formation of a blood clot.

Chemotaxis

The act of an organism or cell moving towards or away from a chemical signal.

Diapedesis

Passage of blood or any of its formed elements through the intact walls of blood vessels.