ABSTRACT
Lighting will require replacement bulbs over time, the security system will need maintaining, till rolls will be required by the point of sale equipment, and the van will need fuel.
3.1 Making savings One of the most important reasons for distinguishing between capital and revenue items is that the former can generally be depreciated over time in the organization’s accounts, whereas the latter is expensed immediately in the period in which it is incurred. We shall see the significance of this in the next section.
