Capital Expenditures vs Expenses: Increase Net Income
Town and Country Corporation is applying for a loan at First National Bank and is worried the loan may not be approved. The company's financial statements are being reviewed by the bank as part of the loan approval process.
The company could incorrectly debit
Select Optionan asset accountan expense account
for the cost of an engine tune-up for a delivery truck so that Total Expenses are
in order to
Net Income which could increase the chance that the loan is approved.