A-LevelAccountingAccounting for non-current assets9706/12 · Oct/Nov 2022 · Q21 Mark

Why is it important for a trader to distinguish between capital expenditure and revenue expenditure? 1 to apply the realisation concept 2 to know which method of depreciation to use 3 to obtain a more accurate profit figure

A1 and 2

B1 only

C2 and 3

D3 only

✓ Correct answer

D: 3 only

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Topic: Accounting for non-current assets, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2022 Paper 1 Variant 2, question 2.

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