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Accounting differentiates between two types of expenditure. Capital expenditure is expenditure relating to the purchase of non-current assets which are not for resale and are used within the business. Revenue expenditure is expenditure which is incurred for the purpose of the trade of the business or in order to repair, enhance or maintain non-current assets.
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Identify whether each of the following types of expenditure are classified as capital or revenue expenditure. Click on an answer to reveal whether its Right! or Wrong
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