Which of the following reactions is an example of nuclear fusion?
Which of the following reactions is an example of nuclear fusion?
Explanation
Capital expenditure: buying long-term assets (buildings, machinery, vehicles) that benefit business over multiple years. Appears on balance sheet as fixed asset. Depreciated over useful life.
Revenue expenditure: day-to-day running costs (wages, rent, electricity, supplies). Benefit is immediate or short-term. Charged to profit and loss account in the period incurred.
Distinguishing matters: capital expenditure on wrong account understates profit; revenue expenditure on wrong account overstates profit. Repairs are revenue; improvements are capital. Classification requires judgment.