passwella.
Menu

WAEC Financial Accounting 1995 Question 39

Question 39

Capital and Revenue Expenditure

Expenditure incurred to maintain an asset's earning capacity is called

  1. A.capital expenditure
  2. B.revenue expenditure
  3. C.general expenditure
  4. D.tangible expenditure.
  5. E.intangible expenditure
Show the answer and explanation

Answer: B (revenue expenditure)

Explanation

Keeping an asset working (repairs, maintenance) is revenue expenditure; improving it is capital.