Expenditure Flashcards
1
Q
What is capital expenditure?
A
Capital expenditure is when a business buys an asset with a life expectancy of more than one year.
2
Q
What are some features of capital expenditure?
A
Could generate substantial revenues
continuous maintenance needed
cost is spread out on financial reports
3
Q
What are some examples of capital expenditure?
A
Machinery
land
buildings
IT services
4
Q
What is revenue expenditure?
A
Revenue expenditures are short term expenses typically used within one year.
5
Q
What are some examples of revenue expenditure?
A
rent
office supplies
6
Q
What is deferred revenue expenditure?
A
Goods that have been paid for but will be received in the future.
