WAEC Accounting 2024 Theory — Question 5

Model answer

1. Capital expenditure occurs occasionally (e.g. once, on acquiring an asset such as a building), while revenue expenditure recurs regularly, such as salaries paid every year. 2. Capital expenditure usually involves a large financial commitment, whereas revenue expenditure does not. 3. Capital expenditure leads to the acquisition of assets with a long useful life, while revenue expenditure is consumed within the accounting period.