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If It Is Not Probable That Expenditure Will Generate Future

Question 2

Multiple Choice

If it is not probable that expenditure will generate future benefits,the accounting treatment should bE.


A) To treat it as a deferred asset.
B) To amortise it over a period of no more than two operating cycles.
C) To expense it.
D) To treat it as an unearned revenue.
E) None of the given answers.

Correct Answer:

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