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Expenditures

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Expenditures

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by AvatarJohn Moffat.
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  • September 3, 2021 at 2:10 pm #634152
    Avatarmaximus07
    Participant
    • Topics: 446
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    • ☆☆☆☆

    Please help me classify these two expenditures into capital and revenue.

    (A) A car bought and we immediately painted. What is painting expenditure classified as?
    (B) We paint business logo on a car or signwriting on a car. Which expenditure it is?

    September 3, 2021 at 4:46 pm #634174
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    They are both capital expenditure.

    (With (A) if we bought a car and then repainted it several years later, then the repainting would be revenue expenditure.)

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