Expenditures

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September 26, 2021 at 5:26 pm #636533
maximus07
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A question in Kaplan is treating it as revenue expenditure:
Blank taxi receipts printed with Bilbo Baggins’ business name and number.

Should not it be treated as Capital expenditure, professor?
September 27, 2021 at 8:28 am #636557
John Moffat
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No, it is revenue expenditure.

Capital expenditure is expenditure on non-current assets. Receipts are certainly not non-current assets – they will be used up whenever they give them to customers.
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