Recording an acquisition of a fixed asset at an improper amount affects the balance sheet until the company disposes of the asset, but the income statement is not affected.

Question

Quizplus · Accepted Answer

Recording an acquisition of a fixed asset at an improper amount affects both the balance sheet and the income statement, as depreciation expense (related to the asset) impacts the income statement over the asset's useful life.

Recording an Acquisition of a Fixed Asset at an Improper