Financial Accounting

Chapter 5b

Capital and Revenue — Expenditures and Receipts

LEARNING OBJECTIVES

At the end of the chapter, you will be able to understand

1. What a Capital Expenditure Is

2. The Meaning and Features of Revenue Expenditure

3. Deferred Revenue Expenditure

4. Some of the Revenue Expenditures to be Treated as Capital Expenditures

5. The Distinction Between Capital and Revenue Expenditures with Reasons

6. To Classify the Transactions into Capital and Revenue Expenditures with Reasons

7. Concepts of Capital and Revenue Receipts

8. To Classify Transactions into Capital or Revenue Receipt

9. The Following Terms – Capitalised Expenditure, Capital Profit and Revenue Profit, Capital and Revenue Loss, Capital and Revenue Payments

OBJECTIVE 1: MEANING OF CAPITAL EXPENDITURE AND ...