Which of the following misstatements would cause the net profit margin ratio to be understated?
A) Capitalizing costs that should have been expensed.
B) Failing to adjust for depreciation in the current period.
C) Failing to accrue income taxes incurred but not yet paid for the current period.
D) Failing to accrue interest earned but not yet collected for the current period.

Question

Quizplus · Accepted Answer

The Answer of Which of the following misstatements would cause the net profit margin ratio to be understated?
A) Capitalizing costs that should have been expensed.
B) Failing to adjust for depreciation in the current period.
C) Failing to accrue income taxes incurred but not yet paid for the current period.
D) Failing to accrue interest earned but not yet collected for the current period.

Which of the Following Misstatements Would Cause the Net Profit