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What is the effect on the 2014 financial statements when a capital expenditure during 2014 was incorrectly recorded as a repairs and maintenance expense? Assets
What is the effect on the 2014 financial statements when a capital expenditure during 2014 was incorrectly recorded as a repairs and maintenance expense?
Assets and net income are both overstated. | |
The financial statements are not affected. | |
Assets are overstated and net income was understated. | |
Assets and stockholders' equity are both understated. |
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