AVBK Practice assessment 1

nicolatects
nicolatects Registered Posts: 3
in Advanced Bookkeeping
Task 1 is on non-current assets. It says "AMBR has a policy of capitalising expenditure over £500".

I only included the oven and the control display in the cost value as they were both above £500. However the answer seems to include the floor stand too, which is below £500.

My understanding was that you look at each individual part of the invoice when applying a minimum capex policy, as above, does this instead apply to the total of all components of the invoice?

Comments

  • Pian32
    Pian32 Registered Posts: 474 Dedicated contributor 🦉
    CS031 is one purchase with add on's so they've all been included in the cost. The stand in this case is strictly for the combi-steam oven so is included.
    AAT Level 4, MAAT
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  • nicolatects
    nicolatects Registered Posts: 3
    Ah I see, thank you so much for the reply!

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