LS1150: Distinguish between Revenue expenditure and Capital expenditure. How are they treated while preparing the final accounts? If by mistake the accountant of a firm treats a capital expenditure as revenue expenditure, how will it affect the final accounts of the firm? Give an example

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Question: Distinguish between Revenue expenditure and Capital expenditure. How are they treated while preparing the final accounts? If by mistake the accountant of a firm treats a capital expenditure as revenue expenditure, how will it affect the final accounts of the firm? Give an example.


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