Accounting for IGCSE & O level - Accounting Procedures (Section 7 - No. 13)
If a revenue expenditure is recorded as a capital expenditure, how is profit impacted?
Profit is overstated.
Profit is understated.
There is no impact on profit.
Profit will fluctuate year on year.
Explanation
Incorrectly recording a revenue expenditure as a capital expenditure will increase profit for the year.
Comments (0)
