expenditure

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April 23, 2023 at 5:56 pm #683399
sguha
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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
April 24, 2023 at 6:16 am #683411
John Moffat
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It 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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