Capital vs
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Questions and Answers

What is the key difference between Capital Expenditure and Revenue Expenditure?

  • Both Capital Expenditure and Revenue Expenditure are for acquiring assets with long-term benefits
  • Both Capital Expenditure and Revenue Expenditure are for day-to-day expenses
  • Capital Expenditure is for acquiring assets with long-term benefits, while Revenue Expenditure is for day-to-day expenses (correct)
  • Capital Expenditure is for day-to-day expenses, while Revenue Expenditure is for acquiring assets with long-term benefits

    • Which type of expenditure impacts the balance sheet by increasing the value of an asset?

  • Both Capital and Revenue Expenditure
  • Revenue Expenditure
  • Capital Expenditure (correct)
  • Neither Capital nor Revenue Expenditure

    • In which type of expenditure are expenses typically incurred for maintaining the day-to-day operations of a business?

  • Revenue Expenditure (correct)
  • Neither Capital nor Revenue Expenditure
  • Both Capital and Revenue Expenditure
  • Capital Expenditure

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