Which of the following reviews would be most likely to indicate that a company's property, plant, and equipment accounts are not understated?
A)Review of the company's repairs and maintenance expense accounts
B)Review of supporting documentation for recent equipment purchases
C)Review and recomputation of the company's depreciation expense accounts
D)Review of the company's miscellaneous revenue account

Question

Quizplus · Accepted Answer

Reviewing the company's repairs and maintenance expense accounts can help identify if expenses that should have been capitalized as property, plant, and equipment are instead being expensed, which would understate the asset accounts.

Which of the Following Reviews Would Be Most Likely to Indicate