Whitetree Company is reviewing its accounting policies for t

Whitetree Company is reviewing its accounting policies for the year, especially as they relate to expenditures on fixed assets after the assets have been purchased. Required: Determine whether each of the following is a capital expenditure or a revenue expenditure. Ignore issues of materiality. Capital Expenditure Revenue Expenditure 1. Replaced and updated the antiquated, out of-date electrical system in building with a 2. Changed oil in company president\'s vehicle 3. Adding a re-writable CD ROM to existing computer 4. Overhaul the engine of a company\'s vehicle Clear Undo Help Next >> I don\'t know

Solution

Capital expenditure entails long term benefits . thus the economic benefit is extended beyond a year it brings into existence a new asset 1) Capital expenditure 2) revenue expenditure 3) Capital expenditure 4) Capital expenditure