A-LevelAccountingThe accounting cycle9706/12 · Oct/Nov 2016 · Q11 Mark

Which transaction applies the matching concept?

Amachine acquired on long-term rental is included in non-current assets.

BComputer equipment is depreciated over two years.

Cbuilding is revalued following a fall in property prices.

Dwaste-paper basket is treated as revenue expenditure.

✓ Correct answer

B: Computer equipment is depreciated over two years.

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Topic: The accounting cycle, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2016 Paper 1 Variant 2, question 1.

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