Capitalizing revenue-based expenses as depreciable assets will cause income to be in the current period and in future periods.

Capitalizing revenue-based expenses as depreciable assets will cause income to be higher in the current period and lower in future periods

Explanation:

By capitalizing the revenue-based expenses means a part of it is released into profit or loss for the current period,hence lower costs,higher profits.

In future periods that none of the revenue-based expenses should be charged to, is been charged with such expenses,as a result more expenses in future periods,lower profits overall.

This approach is distorting as it would show expenses in an unrelated period,hence cut-off procedure is not been observed.

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best of luck,

the divergent

shut up stupid head you are worthless