The Effect of Recording a Capital Expenditure as a Revenue

Multiple Choice

The effect of recording a capital expenditure as a revenue expenditure is that:

A) expenses are overstated, and owners' equity is understated.
B) net profit is understated, and owners' equity is overstated.
C) expenses are understated, and accumulated depreciation is overstated..
D) assets are overstated, and expenses are understated.