I need help with an accounting assignment

Accounting
Tutor: None Selected Time limit: 1 Day

What is the consequence for improperly classifying a fixed asset by recording the repairs and maintenance expense account. And, how will it affect the balance sheet and income statement.

Nov 30th, 2015

Thank you for the opportunity to help you with your question!

Both the balance sheet and income statement will show incorrect values.
Profit will be lesser than what actually is and on the balance statement, the value of the asset will be lesser tahn actual value while the liabilities will be higher.

Let me know incase you need any further help ! Thanks :)
Nov 30th, 2015

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