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What is the difference between “Revenue Expenditures” and
“Capital Expenditures”?
Why is it important to distinguish between these two concepts
in terms of the Income Statement?
List an example of an item which would be labeled as a “Capital
Expenditure” when providing repairs to either a software
program or an office building?

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What is the difference between Revenue Expenditures” and Capital

  • 1. What is the difference between “Revenue Expenditures” and “Capital Expenditures”? Why is it important to distinguish between these two concepts in terms of the Income Statement? List an example of an item which would be labeled as a “Capital Expenditure” when providing repairs to either a software program or an office building?