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Throughout the Current Year, Calverton Company Treated Sales Taxes Paid

Question 152

Multiple Choice

Throughout the current year, Calverton Company treated sales taxes paid on purchases of plant assets as revenue expenditures. As a result, the current year's:


A) Net income is overstated.
B) Revenue is overstated.
C) Depreciation expense is understated.
D) None of the above; payments of sales taxes should be treated as revenue expenditures.

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