Which of the following misstatements would cause the asset turnover ratio to be overstated?
A)Misclassifying an expense as an asset.
B)Failing to adjust the unearned revenue account for amounts earned.
C)Failing to accrue interest on a loan payable to the bank.
D)Failing to accrue rent earned for the current period.

Question

Quizplus · Accepted Answer

The Answer of Which of the following misstatements would cause the asset turnover ratio to be overstated?
A)Misclassifying an expense as an asset.
B)Failing to adjust the unearned revenue account for amounts earned.
C)Failing to accrue interest on a loan payable to the bank.
D)Failing to accrue rent earned for the current period.

Which of the Following Misstatements Would Cause the Asset Turnover