The cost of new equipment is called a revenue expenditure because it will help generate revenues in the future.

Name: The cost of new equipment is called a revenue expenditure because it will help generate revenues in the future.
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Quizplus · Accepted Answer

The cost of new equipment is a capital expenditure because it is a long-term investment in the business and is not expected to generate revenue immediately. However, it will help to generate revenue over its useful life.

The Cost of New Equipment Is Called a Revenue Expenditure