Chapter 6, Problem 6.2ME

To determine

Concept Introduction:

Revenue and Capital Expenditure:

Expenses are categorized in two types for the purpose of recording, Revenue expenses and Capital Expenses. Revenue expenses are day to day operating expenses, whereas the capital expenses are the expenses incurred in acquisition and improvement of assets. The expenses which are incurred in acquisition and improvement of assets are capitalized to the cost of the assets.

To Identify:

The Expenses which should be capitalized