The expenses incurred in purchasing a vehicle is a
Answer Details
The expenses incurred in purchasing a vehicle are generally classified as a capital expenditure. This is because buying a vehicle is considered an investment in the business or personal assets, with the expectation of long-term benefits such as increased productivity, transportation convenience, and potential resale value. Capital expenditures are recorded on the balance sheet as assets and are typically depreciated over time. In contrast, revenue expenditures are expenses incurred in the course of the regular operations of a business, while recurrent expenditures and concurrent expenditures are not commonly used terms in accounting.