Capital & Revenue Expenditure Flashcards
1
Q
What are fixed assets(PPE)?
A
They are non-current assets.
2
Q
What are the costs of buying a PPE?
A
- Costs incurred initially to acquire the asset
- Add to the asset
- Replace parts
- Service the asset
3
Q
What is Capital Expenditure?
A
Expenditures or costs which benefit the business for more than one accounting period
4
Q
What is Revenue Expenditure?
A
Expenditures that benefit the business only in the current period
