If a Capital Expenditure Is Incorrectly Recorded on a Company's

question 91

Multiple Choice

If a capital expenditure is incorrectly recorded on a company's books as a revenue expenditure,which of the following statements will be true?

• A)Net income will be understated for the year.
• B)Stockholders' equity will be overstated at year end.
• C)Total assets will be overstated at year end.
• D)Net income in the following year will be understated.

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