Question

Classify the following as either a revenue or a capital expenditure.

Answer 1

Answer and Explanation:

The capital expenditure is the expenditure which is held for a capital asset i.e fixed assets for improving life, production, etc. It is a one-time expenditure  

While on the other hand the revenue expenditure is the expenditure which is incurred on daily basis i.e frequently like repairs, maintenance

So based on the above, the classification is as follows  

a. Capital expenditure

b. Revenue expenditure

c. Revenue expenditure  

d. Capital expenditure