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Why is miscellaneous expenditure regarded as asset in the balance sheet?
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∙ 12y ago
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Wiki User
∙ 12y ago
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Where does capital expenditures fit in balance sheet?
Capital expenditure are those type of expenditure the benefits of which are taken in more then one years by the business entity. So according to this all fixed assets are capital expenditures and fixed assets are shown at asset side of balance sheet.
What is the meaning of fictitious asset?
fictitious asset for exampal like this (miscellanous expenditure)
What is capital expenditure?
It is an expenditure in order to upgread or capitalize the fixed asset .this can be expressed either by extending the future expected life or by capitalizing the fixed asset cost.
Can expenditure incurred for defence of title of a capital asset be treated as capital expenditure?
Introduction expenditures
Is the cost of a building a fixed asset?
Capital Expenditure.
Is salary a capital expenditure?
No. No capital asset results from it.
What does a capital expenditure results in a debit to?
asset account
Why is it necessary to distinguish between capital and revenue expenditure?
Then only they find the real profit or loss and financial position of the businessBecause the capital expenditure will take place to Balance sheet and revenue expenditure will go to profit and loss account. Capital expenditure also called asset of the business. These expenditure also called non-recurring nature expenses.Revenue expenditure also called recurring nature expenses.
Why is it necessary to distinguish between capital and revenue?
Then only they find the real profit or loss and financial position of the businessBecause the capital expenditure will take place to Balance sheet and revenue expenditure will go to profit and loss account. Capital expenditure also called asset of the business. These expenditure also called non-recurring nature expenses.Revenue expenditure also called recurring nature expenses.
What is the effect on wrong treated revenue expenditure as capital expenditure?
The effects it would has on net profit and net asset is that there would be an increase in net profit and an increase in net asset as well
What is the effect on wrong treated capital expenditure as revenue expenditure?
The effects it would has on net profit and net asset is that there would be an increase in net profit and an increase in net asset as well
In construction company purchase of cow is an asset or indirect exp?
in contruction company purchase of cow is an asset or indirect expenditure
