A-LevelAccountingAccounting for non-current assets9706/12 · Oct/Nov 2015 · Q41 Mark
An item of revenue expenditure is wrongly treated as capital expenditure. What is the effect of this error?
Anon-current assets: overstated, profit for the year: overstated
Bnon-current assets: overstated, profit for the year: understated
Cnon-current assets: understated, profit for the year: overstated
Dnon-current assets: understated, profit for the year: understated
✓ Correct answer
A: non-current assets: overstated, profit for the year: overstated
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