Mr. Amapo Bunkers, President & CEO of Bunkers, Inc.
argues that from accounting perspective,
the
distinction between capital expenditure and revenue expenditure is
time-wasting and
unnecessary. He points out that as long as an item of expenditure
is recorded, it does not matter
whether it is recorded as capital expenditure or as revenue
expenditure, as the effect on the
financial statements will be the same. Do you agree with Mr.
Bunkers? Explain in detail, giving
specific reasons and examples why you agree or disagree with Mr.
Bunkers.
Do not agree
Capital expenditure are like expenditure made on assets which can give you long term benefit
Revenue expenditure is which will give you benefit for shorter period
Capital expenditure and revenue expenditure both treated differently in financial statements
Capital expenditure is to be included in the assets for which the expenditure incurred
And revenue expenditure is shown in the income statements
Example
capital expenditure is spare part purchased of machinery
Revenue expenditure is maintainance cost of the machinery
Hope this will help you
Mr. Amapo Bunkers, President & CEO of Bunkers, Inc. argues that from accounting perspective, the...
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Ethically and to avoid fraud, it is very important for companies to record capital expenditures and revenue expenditures correctly. Read “Ethics, Fraud, & Corporate Governance” on p. 414 of Financial Accounting. Research an article about another company with a scandal related to fraudulent activities around capital expenditure versus revenue expenditure. You may not select the same article as another student. Post a response in 150 to 200 words to the following questions, providing specific examples to support your answers: •Provide...
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ortfolio Project Option #1 is for accounting students who are sensing learners and learn best from concrete materials and examples. If this is your learning style preference, you are practical and careful with detail. For this assignment, you are required to complete Part 1, Part 2, and Part 3. You will present Parts 1 and 2 in Excel, and Part 3 of the Portfolio Project in a Word document, following the exact instructions that accompany each part. (The templates can...