Accounting for IGCSE & O level - Accounting Procedures (Section 12 - No. 9)
What is the primary objective of distinguishing between capital and revenue expenditures?
To determine the total amount of assets a business owns.
To correctly measure the profitability of the business in a given period.
To calculate the amount of sales tax payable.
To determine the number of employees that the business needs.
Explanation
Correct classification ensures accurate profit reporting for each accounting period.
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