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When expenditure termed as asset |
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Answer» Accountants must be aware of the difference between assets and expenses because of the effect confusing the two can have on a company\'s financial statements. An accountant who attempts to treat an asset as an expense will understate the company\'s profitability and total net assets, since assets are not supposed to be wholly expensed in the period they are purchased. Failing to treat assets and expenses correctly will result in erroneous financial statements. You choose maths in commerce |
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