Accounting for IGCSE & O level - Accounting Procedures (Section 15 - No. 19)
What effect does incorrectly classifying a revenue expenditure as a capital expenditure have on the value of non-current assets?
Increases the value.
Decreases the value.
Has no effect on the value.
Causes the value to fluctuate randomly.
Explanation
Incorrectly capitalizing increases the asset's book value.
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