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ID number:110913
Evaluation:
Published: 01.12.1996.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

Following your request, I would like to state how the distinction between money spent on assets and revenue expenses should be made in the company with limited liability. I would also like to use the above accounting concepts to show, by using recent example of WorldCom Inc. bankruptcy, how the can be manipulated and misused in order to overstate annual profit figures.
According to the finance and accounting theory revenue spending or expenditure defined as money spent on the day-to-day running of the business. …

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