Accounting for IGCSE & O level - Accounting Procedures (Section 26 - No. 47)
What is the primary difference between capital expenditure and revenue expenditure?
Capital expenditures are for day-to-day running expenses, while revenue expenditures are for non-current assets.
Capital expenditures benefit a business for the long term, while revenue expenditures benefit for less than one year.
Capital expenditures are recorded as debits in expense accounts, while revenue expenditures are recorded as debits to asset accounts.
Capital expenditures are always greater in amount than revenue expenditures.
Explanation
Capital expenditures provide benefits over the long term, while revenue expenditures provide benefits within one year.
Comments (0)
