In bookkeeping why is a delivery charge a capital expenditure?

In bookkeeping why is a delivery charge a capital expenditure? Could someone elaborate the meanings of capital expenditure and revenue expenditure please?

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  • 10 months ago
    Favorite Answer

    Its a capital expenditure only if it relates the delivery of capital items (property plant and equipment etc.) to your business.

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  • 10 months ago

    A shipping charge could be a capital expenditure or not.

    If you are expanding your office then everything that is associated with the expansion is a capital expense. This would include all the shipping charges that you receive for the building materials.

    If you are have to pay shipping from Amazon to receive your toilet paper, the shipping is not a capital expense.

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  • Jay
    Lv 6
    10 months ago

    A delivery charge is not a capital expenditure on MY books.

    the delivery charge is a reimbursement for shipping when you are sending products to people and the delivery charge is expensed by the people receiving the item.

    A capital expenditure is something big that you invest in that can be depreciated over time.

    Examples:

    A building.

    An HVAC unit.

    A delivery vehicle or a fleet of delivery vehicles

    A fire pump

    A security system

    A computer system.

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