Register now or log in to join your professional community.
Revenue expenditures are normal business expenses and capital expenditures are long-term assets that bring future benefit to the company. Incorrectly recording a capital expenditure has consequences for both financial and tax accounting.
Incorrectly booking a capital expenditure as a revenue expenditure affects expenditure, asset and depreciation accounts. The journal entry overstates expenses and understates assets.
Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.