CPA PEP Prep Q&A

Financial accounting

 
Picture of Marvin Gikaru
Financial accounting
by Marvin Gikaru Send a message - 21 Jan 2016, 2:43 AM
 

What is the difference between capital and revenue expenditure?

 
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Picture of Angela Hernandez
Re: Financial accounting
by Angela Hernandez Send a message - 24 Jan 2016, 8:02 AM
 

That is a tough one, maybe prep can help us, Prep?

 
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Picture of Douglas Justo
Re: Financial accounting
by Douglas Justo Send a message - 25 Jan 2016, 3:14 AM
 

Capital expenditure is the amount set aside to fix or improve a fixed asset while revenue expenditure is aimed at catering for the daily expenses the firm encounters such as cost of fuel, cost of stationery etc..

 
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Picture of Benjamin Osean
Re: Financial accounting
by Benjamin Osean Send a message - 26 Jan 2016, 5:08 AM
 

Capital expenditure; for example money set aside for repairing building.

Revenue expenditure; for example money set aside by the firm to pay employees.

 
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