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      Question

      Identify the INCORRECT statement.

      A Capital expenditure benefits more than one accounting year Correct Answer Incorrect Answer
      B Capital expenditure is incurred to maintain the earning capacity Correct Answer Incorrect Answer
      C Capital expenditure is incurred to acquire fixed assets for operation Correct Answer Incorrect Answer
      D Capital expenditure is non-recurring by nature Correct Answer Incorrect Answer

      Solution

      The correct answer is B

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