Which of the following best distinguishes capital expenditure from revenue expenditure?
Type: MCQ • Marks: 1
Which of the following best distinguishes capital expenditure from revenue expenditure?
Options
A. Capital expenditure generally creates/acquires or enhances a long-term asset or capacity, while revenue expenditure generally relates to current operations
B. Capital expenditure is always paid in cash
C. Revenue expenditure always creates an asset
D. There is no conceptual distinction
Explanation
The distinction concerns the nature and benefit of expenditure, subject to applicable accounting rules.
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UPSC Principal & Vice PrincipalManagement Finance Administration
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