A Company's Accountant Capitalized a Payment That Should Have Been

question 102

Multiple Choice

A company's accountant capitalized a payment that should have been recorded as a revenue expenditure.How will this error affect the company's financial statements?

• A) Net income will be understated.
• B) Expenses will be overstated.
• C) Assets will be overstated.
• D) Liabilities will be overstated.

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