deferred expenditures-profitability statement
How are deferred expenditures dealt with in profitability statement?
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They do not affect profitability statement as they are not passed to the profitability statement in the period throughout that they are paid for. They are indicted to profit and loss account over a number of years depending upon the advantage ensued.
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he following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depreciation (1,800,000) (1,350,000) Depreciation expense 560,000 Gain on disposal of PPE 65,000 The asset disposed of had a cost
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