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Classify Each of the Following Expenditures as Capital Expenditure (CE)or

question 209

Short Answer

Classify each of the following expenditures as capital expenditure (CE)or revenue expenditure (RE).
1.________ Ordinary recurring repairs to keep the machinery in good working order
2.________ Major overhaul to extend the useful life of a vehicle by three years
3.________ Installation costs for a new machine
4.________ Painting


Definitions:

Rotating Magnetic Field

A magnetic field that rotates in space within an electrical machine, such as an induction motor, enabling motion of the rotor.

RPM Speed

A measure of the rotational speed of a mechanical component, denoted in revolutions per minute.

Synchronous Speed

The speed at which the magnetic field in an AC motor rotates, directly proportional to the frequency of the electrical supply and the number of poles in the motor.

Slip

The difference between the synchronous speed of an induction motor's magnetic field and the actual speed of the rotor, expressed as a percentage.

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