Capitalizing costs that should be expensed: a. is allowed if the costs are written off shortly after the transaction takes place. b. has no effect on net income. c. is a practice mostly found in large, well-established companies. d. has the effect of increasing net income by the same amount of the capitalized costs. e. none of the other responses are correct. In asset fraud, assets are most often: a. understated. b. overstated. c. improperly disclosed in the notes to the financial statements. d. recorded as revenues. e. recorded as liabilities. Which of the following is NOT a symptom ofliability fraud? a. None of the other responses are correct. b. Inappropriately capitalizing costs that should be expensed. c. Record payments made in later periods as being paid in earlier periods. d. A sudden decrease in accounts payable/inventory ratio. e. An unusual increase in current ratio