Chapter 11: NCA Flashcards
1
Q
Distinguish between capital expenditure and revenue expenditure
A
Capital expenditure is the cost to buy and bring the NCA to their intended use. CE also includes the costs to enhance the NCA, and provide benefits for more than a year.
Revenue expenditure is the cost to operate, repair, and maintain the NCA in working condition. RE only provides benefits which will be used within one year.
