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Charging an Interest Cost as an Expense When It Should

Question 18

Multiple Choice

Charging an interest cost as an expense when it should be capitalised as an asset will result in:


A) an overstatement of total assets.
B) the understatement of net profit for the next period.
C) an overstatement of interest expense for the next period.
D) the understatement of net profit for the current period.

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