goods purchase for resale will it be revenue expenditure or capital expenditure, cause if goods stay in inventory at end of a period we show it in Financial position as assets , but usually we sell it off as we buy in short term, is it why we will term it as revenue expenditure and not capital expenditure
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expenditure
3y ago#1It is revenue expenditure.
Capital expenditure is expenditure on non-current assets. Inventory is a current asset until it is sold. Again I do explain this in my lectures.
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