Asked by
Mariana Cervantes
on Nov 18, 2024
Verified
The cost of new equipment is called a revenue expenditure because it will help generate revenues in the future.
Revenue Expenditure
Expenses incurred during the normal course of business that are expected to be consumed within the current accounting period.
New Equipment
Capital assets recently acquired by a company for use in its operations, potentially enhancing productivity or efficiency.
- Recognize the importance and components of capital and revenue expenditures.
Verified Answer
DY
Learning Objectives
- Recognize the importance and components of capital and revenue expenditures.
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