Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 69

If a company incorrectly records a payment as an asset, rather than as an expense, how will this error affect net income in the current period
A) Net income will be too high.
B) Net income will be too low.
C) Net income will not be affected by this error.
D) It's a mystery; nobody really knows.