Capital and Revenue expenditure

Question 1

What is capital expenditure

Answer 1

The expenditure on the purchase, alteration or improvement of non current assets

Can be summarised through LIDIA
- Legal costs of buying property
- Installation of non current assets
- Delivery of non current assets
- Improvement of non current assets
- Aswell as the basic costs of non current assets

Question 2

What does the L in LIDIA mean

Answer 2

Legal costs of non current assets

Question 3

What does the first I in Lidia mean

Answer 3

Installation of non current assets

Question 4

What does the D in Lidia mean

Answer 4

Delivery of non current assets

Question 5

What does the second I of lidia mean

Answer 5

Improvement of non current assets

Question 6

What does the A in lidia mean

Answer 6

Aswell as the basic costs of Non current assets

Question 7

What is revenue expenditure

Answer 7

Expenditure on the running costs in a business

Inc maintenance and repair of non current assets, training, insurance and any other running costs

Question 8

Capital income definition

Answer 8

Any income arising from the sale of current assets such as property, vehicles and marketing

Question 9

Revenue income definition

Answer 9

Sales revenue from providing goods/services such as interest received, rent received and commission received