CASE C During the period, the business acquires an equipment costing ₱300,000 in cash. The businesss is questioning why you, as his accountant, did not include ₱300,000 equipment as one of the items of “Operating Expenses” in the Statement of Comprehensive Income which resulted to a higher income tax of the business. How would explain it to the Mr. RVC as the business owner?
CASE C During the period, the business acquires an equipment costing ₱300,000 in cash. The businesss is questioning why you, as his accountant, did not include ₱300,000 equipment as one of the items of “Operating Expenses” in the Statement of Comprehensive Income which resulted to a higher income tax of the business. How would explain it to the Mr. RVC as the business owner?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CASE C During the period, the business acquires an equipment costing ₱300,000 in cash. The businesss is questioning why you, as his accountant, did not include ₱300,000 equipment as one of the items of “Operating Expenses” in the Statement of Comprehensive Income which resulted to a higher income tax of the business. How would explain it to the Mr. RVC as the business owner?
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