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Non-current assets: Acquisition and depreciation
Capital expenditure Revenue expenditure
Expenditure on the acquisition of Expenditure on current assets.
non-current assets required for
use in the business, not for Expenditure relating to running
resale. the business (such as
administration costs).
Expenditure on existing non-
current assets aimed at Expenditure on maintaining the
increasing their earning capacity. earning capacity of non-current
assets e.g. repairs and renewals.
Capital expenditure is long-term in
nature as the business intends to Revenue expenditure relates to
receive the benefits of the the current accounting period and
expenditure over a long period of is used to generate revenue in the
time. business.
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