Accounting · Capital and Revenue Expenditure
What is the general treatment of non-recurring expenditure, as per accounting principles?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It is treated as revenue expenditure only when it relates to the purchase of fixed assets.
- 2It is always treated as capital expenditure unless the amount is significant.
- 3It is always treated as capital expenditure, regardless of the amount involved.
- 4It is treated as revenue expenditure unless the materiality concept requires it to be classified as capital expenditure.✓
Correct answer
It is treated as revenue expenditure unless the materiality concept requires it to be classified as capital expenditure.
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