Accounting 0452 · IGCSE · Capital and revenue expenditure and receipts

Capital and revenue expenditure and receipts — practice question

What effect does incorrectly classifying expenses as capital expenditure have?

  • Aprofit for the year overstated; expenses total overstated
  • Bprofit for the year overstated; expenses total understated
  • Cprofit for the year understated; expenses total understated
  • Dprofit for the year understated; expenses total overstated

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