Accounting for IGCSE & O level - Accounting Procedures (Section 18 - No. 22)
What is the impact on profit if a revenue expenditure is incorrectly recorded as a capital expenditure?
Profit is overstated.
Profit is understated.
Profit is unaffected.
The impact varies depending on the amount.
Explanation
This will delay the expense which overstates the profit.
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