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Differences between revenue and capital expenditures

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What are the differences between revenue expenditures and capital expenditures? Explain the entries of each.

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Solution Summary

This solution explains the difference between revenue expenditures and capital expenditures, giving examples of each.

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Revenue expenditures are ones which will be charged to expenses as they are incurred. It will be part of the income statement and used to reduce total revenues to net income. The definition may seem confusing but it is intended to explain that revenue expenditures are operating expenses and those which must be ...

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