B为什么不对呢？

问题如下：

Q. With respect to Statement 1, which of the following is the most likely effect of management’s decision to expense rather than capitalize these expenditures?

选项：

A.2022 net profit margin is higher than if the expenditures had been capitalized. B.2022 total asset turnover is lower than if the expenditures had been capitalized. C.Future profit growth will be higher than if the expenditures had been capitalized.

解释：

C is correct. Expensing, rather than capitalizing, an investment in long-term assets will result in higher expenses and lower net income and net profit margin in the current year. Future years’ incomes will not include depreciation expense related to these expenditures. Consequently, year-to-year growth in profitability will be higher. If the expenses had been capitalized, the carrying amount of the assets would have been higher and the 2022 total asset turnover would have been lower.