If a Company Incorrectly Records a Payment as an Expense

question 155

Multiple Choice

If a company incorrectly records a payment as an expense instead of an asset,how will this error affect net income in the current period?

• A)Net income will be too low.
• B)Net income will be correct.
• C)Net income will be too high.

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Definitions:

Implicit Personality Theory

The assumptions individuals unconsciously make about how personality traits are connected and how they influence behavior.

Physical Characteristics

The observable attributes or features of an object, person, or place.

Perceptual Selection

The process by which individuals filter, select, and interpret sensory information to create a meaningful picture of the world.

Safety Standards

Regulations and procedures put in place to ensure the health and safety of individuals in the workplace or public areas.