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Answer the following regarding acquisition and expenditure cycle: A manager could record expenditures as assets or expenses, why might they do this? Consider all types
Answer the following regarding acquisition and expenditure cycle:
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A manager could record expenditures as assets or expenses, why might they do this? Consider all types of purchases/acquisitions and where they end up in the financial statements.
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A manager might record liabilities only when invoices are received, why might they do this? What is a reason a manager might also record liabilities prior to incurring the expense of owning assets? Does it affect short term and/or long term, if so, why?
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