1. Define the terms capital expenditures and revenue expenditures. What determines whether an item is a capital or revenue expenditure? 2. How is the gain or loss on the sale of an operating asset...

1. Define the terms capital expenditures and revenue expenditures. What determines whether an item is a capital or revenue expenditure?

2. How is the gain or loss on the sale of an operating asset calculated? Where would the Gain on Sale of Asset account appear on the financial statements?