Capital and Revenue Expenditure Flashcards
1
Q
What is the definition of Capital Expenditure?
A
Capital Expenditure is items that will benefit the firm beyond the current year and creates an asset.
2
Q
What are the three types of capital expenditure?
A
Purchase of a fixed asset
Costs spent to install the fixed asset to get it ready for use
Improvements to the fixed asset to extend its useful life.
3
Q
What is the definition of Revenue Expenditure?
A
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