• 1 Marks

FA – Nov 2012 – L1 – SA – Q24 – Accruals and Prepayments

Identifying revenue expenditure that provides benefit beyond the accounting period.

An expenditure of revenue nature that will give benefit for a period longer than the accounting period in which it was incurred is known as:

Capital Expenditure

Explanation:
The correct answer is Capital Expenditure because it refers to costs that provide long-term benefits, such as improvements or acquisitions that are not fully consumed in the accounting period.

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