How do you know if an expenditure should be recorded as an asset or as an...

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How do you know if an expenditure should be recorded as an asset or as an expense? If the amount is material Its always an a

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Answer 1

Answer #1

Answer :- When there is a benefit to the future period.

Expense - is something which gives economic benefit to the entity in a particular period or financial year whereas an asset give economic benefit to the entity and can be controlled by the entity in future periods also.

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