If a company decides to record an expenditure made this period as an expense,when it should have been recorded as an asset,net income will be overstated in the current period as a result.

Name: If a company decides to record an expenditure made this period as an expense,when it should have been recorded as an asset,net income will be overstated in the current period as a result.
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Question

Quizplus · Accepted Answer

Erroneously recording an asset as an expense would overstate total expenses,which would understate net income.

If a Company Decides to Record an Expenditure Made This