ocr: Introduction Money invested in fixed assets is regarded as capital expenditure since the expenditure is incurred on those items which represent the "bricks and nortar" or capital base of the organisation. Money invested in working capital, on the other hand, is regarded as revenue expenditure since the expenditure IS incurred on those items such as raw naterials, manutacturing costs and debtors, which will eventually be converted into cash and thus to enable cash to flow back into the business int the torm of revenue trom sales receipts. One final point, what are the two crucial tactors which ...
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