A firm expenses an item that should have been capitalized.

What effect will this have on the financial statements?

Select one:

a. Cash flow from operating activities will be lower.

b. Cash flow from investing activities will be higher.

c. Profits will be higher in the current period.

d. All of the above are true.

e. None of the above are true.

A firm expenses an item that should have been capitalized. What effect will this have on the financial statements? Select one: a. Cash flow from operating activities will be lower. O b. Cash flow from investing activities will be higher. O c. Profits will be higher in the current period. d. All of the above are true. O e. None of the above are true. Clear my choice