when a firm incurs costs on an item to be used in operations, management must decide whether to treat the cost as an asset or an expense. assume that a company used cash to acquire machinery expected to contribute to the generation of revenues over a three-year period and the company erroneously expenses the cost to acquire the machine. ignoring tax effects, describe the effects on roa of the error over the three-year period. explain how the error would affect the statement of cash flows.