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.
C
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Answer the following statements true (T) or false (F)
1. A markdown on certain grocery-store items may result in a rush of customer demand for those products, which is an example of the control systems benefit of detecting threats. 2. One reason why control is needed is to centralize decision making. 3. The control process begins with measuring performance. 4. A control standard is the average performance level for a given workplace activity.
Bank statements provide information about all of the following except
a. checks cleared during the period. b. NSF checks. c. bank charges for the period. d. errors made by the company.
Based on the information in the textbook, what advice would you give to a businessperson about making the best use of time during the drafting phase of the writing process?
Opportunity costs include those cash inflows that could be generated from assets the firm already owns if those assets are not used for the project being evaluated.
Answer the following statement true (T) or false (F)