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Sassycat Designs Inadvertently Recorded an Expense as a Capital Expenditure

Question 85

Multiple Choice

Sassycat Designs inadvertently recorded an expense as a capital expenditure. Which of the following will occur as a result of this mistake?


A) Assets will be understated.
B) Net income will be understated.
C) Net income will be overstated.
D) Both A and C will occur.

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