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capital expenditure

This topic has 1 reply, 2 voices, and was last updated 5 years ago by Ken Garrett.

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July 5, 2020 at 1:37 am #576014
beticopper
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is testing equipment on the purchase a capital expense or a revenue expense?
July 5, 2020 at 10:05 am #576035
Ken Garrett
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Sounds like capital because of the word ‘equipment’.
If the items were disposable, like litmus paper dip sticks, it would be revenue.
If the item is a machine that is going to be used for several years it would be capital.
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