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A - Which of the following would not overstate current period net income?

A - Which of the following would not overstate current period net income?a. Capitalizing an expenditure that should be expensed.b. Failing to record a liability for an expenditure.c. Failing to record a check paying an item in Vouchers Payable.d. All of the above would overstate net income.B - A client’s purchasing system ends with the recording of a liability and its eventual payment. Which of the following best describes the auditor’s primary concern with respect to liabilities resulting from the purchasing system?a. Accounts payable are not materially understated.b. Authority to incur liabilities is restricted to one designated person.c. Acquisition of materials is not made from one vendor or one group of vendors.d. Commitments for all purchases are made only after established competitive biddingprocedures are followed.Answer both questions

A ­ Which of the following would not overstate current period net income? a. Capitalizing an expenditure that should be expensed.b. Failing to record a liability for expenditure.c. Failing to...
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