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:

HRM Planning

The process an organization uses to ensure that it has the right amount and the right kind of people to deliver a particular level of output or services in the future.

Operational Activities

The day-to-day tasks and processes that are necessary for an organization to function and achieve its business objectives.

HR Role

The function and responsibilities assigned to the human resources department, including talent acquisition, development, and management.

Service Delivery Model

A framework that defines how services are provided to customers, including processes, roles, and responsibilities.