Accounting for IGCSE & O level - Accounting Procedures (Section 14 - No. 6)
What is the main difference between revenue and capital expenditures regarding accounting treatment?
Revenue expenditures are immediately expensed, while capital expenditures are capitalized (recorded as assets) and depreciated.
Revenue expenditures are depreciated, while capital expenditures are expensed.
Revenue expenditures are always smaller in amount.
Capital expenditures only affect the income statement.
Explanation
Capital expenditures are recorded on the balance sheet as assets. Revenue expenditures are expensed immediately.
Comments (0)
