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Financial Accounting

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Capital Expenditures vs Expenses

FINACT-2W$O7P

Capital Expenditures and repairs and maintenance expenses are recorded on the financial statements differently.

Capital expenditures are recorded as debits to an

on the

because these types of expenditure provide

benefits to the company that owns them.

Repairs and maintenance expenditures are recorded as debits to an

on the

because these types of expenditure provide

benefits to the company that owns them.