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    Praroop Singh
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    1. The document discusses accounting concepts like capital expenditures, revenue expenditures, and depreciation. It explains that capital expenditures are shown on the balance sheet as assets while revenue expenditures are shown as expenses on the income statement. 2. Depreciation is the allocation of the cost of a capital asset over its useful life and is shown as an expense on the income statement. This allows the cost of the asset to be matched with the revenue it helps to generate over multiple periods of time. 3. Distinguishing between capital and revenue expenditures is important for properly preparing financial statements in accordance with accounting concepts and principles.

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    1. The document discusses accounting concepts like capital expenditures, revenue expenditures, and depreciation. It explains that capital expenditures are shown on the balance sheet as assets while revenue expenditures are shown as expenses on the income statement. 2. Depreciation is the allocation of the cost of a capital asset over its useful life and is shown as an expense on the income statement. This allows the cost of the asset to be matched with the revenue it helps to generate over multiple periods of time. 3. Distinguishing between capital and revenue expenditures is important for properly preparing financial statements in accordance with accounting concepts and principles.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    23 views6 pages

    Answer 1 Fa

    Uploaded by

    Praroop Singh
    1. The document discusses accounting concepts like capital expenditures, revenue expenditures, and depreciation. It explains that capital expenditures are shown on the balance sheet as assets while revenue expenditures are shown as expenses on the income statement. 2. Depreciation is the allocation of the cost of a capital asset over its useful life and is shown as an expense on the income statement. This allows the cost of the asset to be matched with the revenue it helps to generate over multiple periods of time. 3. Distinguishing between capital and revenue expenditures is important for properly preparing financial statements in accordance with accounting concepts and principles.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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