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An increase in fixed assets, such as machinery or equipment, can enhance production capacity and efficiency, leading to higher output and potentially increased sales. Improved technology can also reduce operational costs and downtime, contributing to higher profit margins. Additionally, investing in fixed assets can create a competitive advantage, allowing businesses to offer better quality products or services, which can attract more customers and boost revenue. Ultimately, the effective utilization of fixed assets can translate into greater profitability over time.

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3w ago

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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


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When we purchase fixed asset on credit then it increases our Assets and also increase liability. Transaction as follows: Asset [Debit] Payable [Credit]


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cr asset account for cost price dr accumulated depreciation for asset depreciation cr asset sale account dr/cr profit/loss on asset account


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In the profit and loss: Expenses and in the bakance sheet: Any asset


What is money for investment?

Using money or capital to buy an asset with the hope that the value of that asset will increase and give you the opportunity to sell at a profit.


Is a desk a fixed asset or a current asset?

A fixed asset.


What is the profit or loss on sale of fixed assets?

In cash flow from operating activities in cash flow statement, loss on sale of asset is included to net profit to arrive at cash flow from operating activities and shown under cash flow from investing activities as this is part of investing activities but in normal net income it is shown as an adjustment which needs to be adjusted to arrive at cash flow from operating activities.


What will increase an asset and increase owners equity?

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What are the names of some software to help with fixed asset management?

You can use the software Sage Fixed Assets to help with fixed asset management. This program has been used for over 30 years and will help increase accuracy.


What happens if revenue expenditure is recorded as a capital expenditure?

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