The failure to capitalize a permanent asset, or the recording of an asset acquisition at the improper amount, affects the balance sheet
A) forever.
B) for the current period.
C) for the depreciable life of the asset.
D) until the firm disposes of the asset.

Question

Quizplus · Accepted Answer

The error affects the balance sheet until the firm disposes of the asset because the asset's value will be incorrect until it is removed from the books.

The Failure to Capitalize a Permanent Asset, or the Recording