Classification of capital expenditures and revenue expenditures: An analysis of correlation and neural networks
The classification between the capital expenditures and revenue expenditures is one of the common problems in the accounting literature since it has a significant impact on financial statements.This study aims to analyze the correlation of classification model such as Neural Networks (NN) in order t...
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my.uum.repo.135732020-11-01T08:22:52Z http://repo.uum.edu.my/13573/ Classification of capital expenditures and revenue expenditures: An analysis of correlation and neural networks Siraj, Fadzilah Abu Bakar, Nur Azzah Abolgasim, Adnan QA76 Computer software The classification between the capital expenditures and revenue expenditures is one of the common problems in the accounting literature since it has a significant impact on financial statements.This study aims to analyze the correlation of classification model such as Neural Networks (NN) in order to develop a model that can be trained to recognize hidden patterns of the borderline between the two expenditures types, viz: the capital and revenue expenditure.Twelve criterions were identified in order to classify between the two expenditures types and a Backpropagation Learning was utilized in this study.The highest classification accuracy obtained by NN is 94.20%. Correlation analysis reveals a significant correlation between some identified criterions with the model’s target.Strong correlation between target and criterion LASMFY (0.532) indicates that any expenditure lasts for more than a fiscal year will be more probable to be classified into a capital expenditure.Also, criterion RESALE proves its strong influence, with correlation of (-0.874) which implies more probability of classification into revenue expenditure if any expenditure was spent for intent for resale. Medium correlation shown by criterion REGULR (-0.251) indicates a moderate probability of classification into revenue expenditure if expenditure was spent in a regular basis. 2009 Conference or Workshop Item PeerReviewed application/pdf en http://repo.uum.edu.my/13573/1/PID256.pdf Siraj, Fadzilah and Abu Bakar, Nur Azzah and Abolgasim, Adnan (2009) Classification of capital expenditures and revenue expenditures: An analysis of correlation and neural networks. In: International Conference on Computing and Informatics 2009 (ICOCI09), 24-25 June 2009, Legend Hotel, Kuala Lumpur. http://www.icoci.cms.net.my |
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The classification between the capital expenditures and revenue expenditures is one of the common problems in the accounting literature since it has a significant impact on financial statements.This study aims to analyze the correlation of classification model such as Neural Networks (NN) in order to develop a model that can be trained to recognize hidden patterns of the borderline between the two expenditures types, viz: the capital and revenue expenditure.Twelve criterions were identified in order to classify between the two expenditures types and a Backpropagation Learning was utilized in this study.The highest classification accuracy obtained by NN is 94.20%. Correlation analysis reveals a significant correlation between some identified criterions with the model’s target.Strong correlation between target and criterion LASMFY (0.532) indicates that any expenditure lasts for more than a fiscal year will be more probable to be classified into a capital expenditure.Also, criterion RESALE proves its strong influence, with correlation of (-0.874) which implies more probability of classification into revenue expenditure if any expenditure was spent for intent for resale. Medium correlation shown by criterion REGULR (-0.251) indicates a moderate probability of classification into revenue expenditure if expenditure was spent in a regular basis. |
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Conference or Workshop Item |
author |
Siraj, Fadzilah Abu Bakar, Nur Azzah Abolgasim, Adnan |
author_facet |
Siraj, Fadzilah Abu Bakar, Nur Azzah Abolgasim, Adnan |
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Siraj, Fadzilah |
title |
Classification of capital expenditures and revenue expenditures: An analysis of correlation and neural networks |
title_short |
Classification of capital expenditures and revenue expenditures: An analysis of correlation and neural networks |
title_full |
Classification of capital expenditures and revenue expenditures: An analysis of correlation and neural networks |
title_fullStr |
Classification of capital expenditures and revenue expenditures: An analysis of correlation and neural networks |
title_full_unstemmed |
Classification of capital expenditures and revenue expenditures: An analysis of correlation and neural networks |
title_sort |
classification of capital expenditures and revenue expenditures: an analysis of correlation and neural networks |
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2009 |
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http://repo.uum.edu.my/13573/1/PID256.pdf http://repo.uum.edu.my/13573/ http://www.icoci.cms.net.my |
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1683233074291146752 |
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13.19449 |