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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Definitions:

Eclectic Therapy

A therapeutic approach that combines techniques from different therapeutic traditions to best meet the needs of the individual client.

Client-Centered

A therapeutic approach emphasizing the importance of understanding the client's perspective and fostering a supportive environment that facilitates self-discovery and growth.

Humanistic

Relating to a psychological perspective that emphasizes the study of the whole person and the uniqueness of human experience and potential.

Classical Psychoanalysis

A therapeutic approach developed by Freud that seeks to understand and treat mental disorders by exploring the unconscious mind, dreams, and childhood experiences.