1-If a company improperly capitalises a cost :

a-Current depreciation expense is understated

b-Current profits are overstated

c- Future profits are overstated

d-Total assets are understated

2-If a company improperly capitalises a cost

a-Current profit will be overstated

b-future profit will be overstated

c-Future revenue will be overstated

d-Current revenue will be understated

3-Which of the following situations is most likely to trigger the recognition of revenue?

a- a seller begins price negotiation with the buyer

b-a buyer orders goods to be delivered at a future date

c-goods are shipped to a buyer who has agreed to the price

d-a buyer makes a cash deposit for the future delivery of goods