Question
2) All else being equal, the capitalisation of expenditure as part of Property Plant and Equipment and the subsequent depreciation of the generated asset: A:
2) All else being equal, the capitalisation of expenditure as part of Property Plant and Equipment and the subsequent depreciation of the generated asset: A: will result in a reduction of profits in the year of capitalisation as well as an increase in profits in subsequent years B: will result in an increase of profits in the year of capitalisation as well as a increase in profits in subsequent years C: will reduce profits in the year of capitalisation but have no effect on subsequent years D: will increase profits in the year of capitalisation but have no effect on subsequent years E: will result in a amount of total assets in the year of capitalisation as well as a smaller amount of total assets in subsequent years F: none of the above
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