Friday, March 1, 2019

A "secret reserve" will be created if

A "secret reserve" will be created if



a. inadequate depreciation is charged to income.
b. a capital expenditure is charged to expense.
c. liabilities are understated.
d. stockholders' equity is overstated.


Answer: a capital expenditure is charged to expense.

at
Labels:

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Assuming a current ratio of 1.2 and an acid-test ratio of 0.80, how will the purchase of inventory with cash affect each ratio?

Assuming a current ratio of 1.2 and an acid-test ratio of 0.80, how will the purchase of inventory with cash affect each ratio? A) Increase ...