Question: A company incorrectly records a payment as an asset instead of an expense. How will this error affect accrual - basis net income? Net income

A company incorrectly records a payment as an asset instead of an expense. How will this error affect accrual-
basis net income?
Net income will be too high in the current period.
Net income will be too low in the current period.
Net income will not be affected by this error in the current period but will be too high in a later period.
Net income will never be affected by this error because assets are reported on the balance sheet.
A company incorrectly records a payment as an

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