i) calculates the capital expenditure and revenue expenditure that adliana incurredii)explain why firms must correctly classify expenditures incurred as either capital expenditure or revenue expenditures 5. Adliana wanted to start a business and he decided to open a grocery shop. Heincurred the following expenses which were paid in cash.RMShoplotRenovation150,00050,0005,0001,00015,000SignboardBusiness licenseInventoryAdvertisingsalary1,5003,000

Capital expenditures are typically one-time large purchases of fixed assets that will be used for…

i) calculates the capital expenditure and revenue expenditure that adliana incurred ii)explain why firms must correctly classify expenditures incurred as either capital expenditure or revenue expenditure

i) calculates the capital expenditure and revenue expenditure that adliana incurred ii)explain why firms must correctly classify expenditures incurred as either capital expenditure or revenue expenditure

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

i) calculates the capital expenditure and revenue expenditure that adliana incurred

ii)explain why firms must correctly classify expenditures incurred as either capital expenditure or revenue expenditures

5. Adliana wanted to start a business and he decided to open a grocery shop. He
incurred the following expenses which were paid in cash.
RM
Shoplot
Renovation
150,000
50,000
5,000
1,000
15,000
Signboard
Business license
Inventory
Advertising
salary
1,500
3,000

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