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Assume that Morrison Company used cash to acquire machinery expected to contribute to the generation...

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Accounting

Assume that Morrison Company used cash to acquire machinery expected to contribute to the generation of revenues over a three-year period and the company erroneously expensed the cost to acquire the machine.

a. Describe the effects on ROA of the error over the three-year period.

b. Explain how the error would affect the statement of cash flows.

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