Question

1
Marks
16. 24. distinction between
capital and revenue item is not
made under
basis of
accounting
a)cash
b)accrual​

Answer 1

The Going Concern Assumption allows the accountant to classify the expenditure as Capital Expenditures and Revenue Expenditures, capital receipts and capital revenues. This distinction between capital and revenue nature of the items is necessary in order to find out the correct profit or loss during the year and also to ascertain the true and fair position of the business.

Answer 2

Answer:

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