Ch 11

Question 1

capital expenditure

Answer 1

• bring the non current assets to intended use to enhance the condition of NCA
• benefits last more than one year
• NCA in financial pos

Question 2

Revenue exp

Answer 2

• maintain the NCA in working condition make it same as before
• last less than one year
• other expenses in financial perf

Question 3

Prudence

Answer 3

not to overstate current assets and profit

Question 4

Matching

Answer 4

Revenue earned is matched/compared to the expense incurred in the same period
Determine the correct profit/ loss

Question 5

net realizable value

Answer 5

Market value