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Revenue expenditure is monies spent on the day-to-day running of a business whereas capital expenditure is monies spent on the purchase of or addition to a non-current asset. The cost of revenue expenditu...
Assets = Capital + Liabilities Capital = Assests - Liabilities Liabilities = Capital - Assets
The straight-line method for depreciation calculates a fixed amount of depreciation over the assets useful life. The reducing balance method calculates the depreciation every year based on the assets net ...
The matching concept, otherwise known as the 'accruals' concept, is a fundamental accounting principle that provides that income and expenditure in a business should be matched to the period to which t...
In financial accounting we have different types of depreciation, based on the company's accounting policy. One of the methods is straight line depreciation.
Assets can be depreciated, so...
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