Activity 18 1. What are capital assets / expenses? 90 words 2. Can you claim a GST credit for capital acquisitions? 70 words 3. What is a GST Reverse charge? 45 words 4. Is GST payable to goods...

1. Capital Expenditure is the expenditure incurred by a company to acquire any capital assets or to make addition in the existing capital assets. These are added to the cost of asset rather than being charged as operating expense because the benefit of these expenditure can be derived for more than 1 accounting year. Since these are used for more than 1 year the expenditure is charged to the Profit and Loss on the basis of life of the company. Example: If the...