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Costs that proceed a benefit, new assets that have substantial life, improvements that prolong the life of property, and adaptions that permit the property be used for new or different purpose are considered capital expenditures. In a nut shell, they are all initial cost with long term profitable results.
What else can I help you with?
If a capital expenditure is treated as a revenue expenditure then?
Now, if a capital expenditure is treated as a revenue expenditure, then the expenses would be overstated and also the Fixed assets would be overstated
What happens when a capital expenditure is treated as a revenue expenditure?
Expenses are overstated and assets are overstated
What happens when capital expenditure is treated as revenue expenditure?
Expenses are overstated and assets are overstated
What happens when a capital expenditure is treated as revenue expenditure?
Expenses are overstated and assets are overstated
Can expenditure incurred for defence of title of a capital asset be treated as capital expenditure?
Introduction expenditures
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
What is marginal costing and direct costing?
Marginal costing is a technique of costing where the variable expenses are charged to a product. It ignores the fixed expenses incurred by the business in fixing the price of a product on the assumption that the fixed expenses are not incurred in producing an additional unit.They are treated as period costs& charged directly to P& L A/C.Marginal cost is the cost of producing an additional unit of product.It takes the direct expenses & the variable portion of the overhead expenditure. But Direct costing takes into account only the direct expenses like direct mterials, direct labour & direct expenditure for finding out the cost of a product.
What is deferred revenue expenditure how and where do you track it in balance sheet?
Deferred revenue expenditure refers to costs that have been incurred but not yet recognized as expenses in the income statement, typically because they provide benefits over multiple periods. These expenditures are treated as assets on the balance sheet until the benefit is realized; common examples include advertising costs or research and development expenses. On the balance sheet, they are usually listed under "assets," often categorized as "deferred expenses" or "prepaid expenses," reflecting the future economic benefits they will provide. As the benefits are realized, the costs are gradually expensed in the income statement.
How are outstanding expenses treated in final accounts?
i don't no. please give answer.
This country has its capital on the river Danubewater from Danube has to be treated before it is drinkable?
this country has it's capital on the river Danube . water from the Danube has to be treated before it is drinkable.
Is share asset or liability?
Share is treated as liability. It is not treated as asset. shares is called as share capital. capital is entered in the liabilities side of the balance sheet.
