Explain clearly the difference between capital expenditure and revenue expenditure. State which of the following you would
Question:
Explain clearly the difference between capital expenditure and revenue expenditure. State which of the following you would classify as capital expenditure, giving your reasons:
(a) Cost of building extension to factory.
(b) Purchase of extra filing cabinets for sales office.
(c) Cost of repairs to accounting machine.
(d) Cost of installing reconditioned engine in delivery van.
(e) Legal fees paid in connection with factory extension.
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Capital Expenditure vs Revenue Expenditure Capital Expenditure and Revenue Expenditure are two distinct categories of expenses incurred by businesses and they are treated differently in financial acco...View the full answer
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Related Book For 
Frank Woods Business Accounting Volume 1
ISBN: 9780273681496
10th Edition
Authors: Frank Wood, Alan Sangster
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