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