Capital Expenditure refers to those expenditure incurred for acquiring, upgrading and maintaining the firm's physical assets
Revenue Expenditure refers to those expenditure incurred for ongoing operational costs of running a firm.
1. Installed GPS systems on the trucks will be classified as <u>Capital Expenditure</u>
2. Replaced the transmission fluid on a truck that had been in service for the past four years will be classified as <u>Revenue Expenditure</u>.
3. Overhauled the engine on one of the trucks purchased three years ago will be classified as <u>Capital Expenditure</u>.
4. Performed annual service of installing new spark plugs, changing the oil and greasing the joints of all trucks and vans will be classified as <u>Revenue Expenditure</u>.
5. Rebuilt the engine on one of the vans that had been driven 80,000 miles will be classified as <u>Capital Expenditure</u>
6. Repaired a flat tire on one of the vans will be classified as <u>Revenues Expenditure</u><u>.</u>
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7. Installed a hydraulic lift to a truck will be classified as <u>Capital Expenditure</u>.
8. Tinted the back and side windows of the vans and installed a security system to discourage theft of contents will be classified as <u>Capital Expenditure</u>
9. Replaced a truck's suspension system with a new suspension system , allowing for heavier loads will be classified as <u>Capital Expenditure</u>
10. Installed an optional third - row seat on one of the vans will be classified as <u>Capital Expenditure</u>.
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