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Discuss how matching principle applies to depreciation

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Reference no: EM132623364

Question -

a) Discuss how matching principle applies to depreciation.

b) Differentiate between capital expenditure and revenue expenditure with 2 examples of each.

c) Why is the reducing balance method preferred over the straight line method in some cases?

d) Explain why items are recorded on the opposite side of the cash book to that on which they appear on the bank statement.

Reference no: EM132623364

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