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Identify the Factors That Are Considered in Classifying an Expenditure

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Essay

Identify the factors that are considered in classifying an expenditure as a capital or a revenue expenditure. Are there instances where it may be difficult to classify an expenditure as one or the other ? What basis would be used in a decision?


Definitions:

Software

General term for the programs and operating information used by a computer.

Input Device

is a hardware component used to enter data or commands into a computer or other electronic systems.

Hardware Component

A physical piece of a computer or electronic system that contributes to the functionality of the machine.

Mobile Device

A portable computing device such as a smartphone or tablet that has wireless internet capabilities.

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