The government health center purchases an ambulance amounting to RO 12,000. Which among the following statement is true for recording the ambulance in government accounting books?a.Treated as income and shown in the statement of revenue and expenditureb.Treated as expenditure for the period and not shown in the statement of Assets and Liabilitiesc.Shown in the statement of assets and liabilities at its market valued.Shown in the statement of assets and liabilities at its written down value

There are two types of expenditure - capital and revenue. Capital expenditure are those expenses…

Answered: The government health center purchases…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The government health center purchases an ambulance amounting to RO 12,000. Which among the following statement is true for recording the ambulance in government accounting books?

Treated as income and shown in the statement of revenue and expenditure

Treated as expenditure for the period and not shown in the statement of Assets and Liabilities

Shown in the statement of assets and liabilities at its market value

Shown in the statement of assets and liabilities at its written down value

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