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1. Capital expenditure and revenue expenditure are two types of

expenditures that a business may incur. Capital expenditure is the
money spent to acquire, improve, or extend the life of a long-term
asset, such as equipment, buildings, or land. Revenue expenditure is the
money spent to maintain the day-to-day operations of a business, such
as wages, rent, utilities, or supplies. Capital expenditure is usually one-
time and large in amount, while revenue expenditure is recurring and
small in amount. Capital expenditure adds value to an asset and is
shown on the balance sheet, while revenue expenditure does not add
value to an asset and is shown on the income statement 1 2.

2. The qualitative characteristics of financial information are the attributes

that make it useful for decision-making purposes. According to the
International Accounting Standards Board (IASB), there are two
fundamental and four enhancing qualitative characteristics of financial
information5:

○ Relevance: Financial information is relevant if it can influence the

decisions of users by providing information about past, present,
or future events. Relevant information has predictive value and
confirmatory value. It also has materiality, which means that it is
significant enough to affect the decisions of users 5.

○ Faithful representation: Financial information is faithfully

represented if it reflects the economic reality of the transactions
and events that it purports to represent. Faithful representation
requires that the information is complete, neutral, and free from
error5.

○ Comparability: Financial information is comparable if it enables

users to identify and understand the similarities and differences
among items. Comparability requires that the information is
consistent over time and across entities5.

○ Verifiability: Financial information is verifiable if different

knowledgeable and independent observers can reach a consensus
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that the information is a faithful representation of the economic
reality. Verifiability requires that the information is supported by
sufficient and appropriate evidence5.

○ Timeliness: Financial information is timely if it is available to users

in time to influence their decisions. Timeliness requires that the
information is not significantly delayed or outdated 5.

○ Understandability: Financial information is understandable if it is

clear and concise and can be comprehended by users who have a
reasonable knowledge of business and economic activities.
Understandability requires that the information is presented in a
logical and coherent manner5.

I hope this helps. If you have any other questions, please feel free to ask. 😊

Source(s)
1. Capital Expenditures vs. Revenue Expenditures: What's the Difference?
2. Difference between Capital Expenditure and Revenue Expenditure - BYJU'S
3. Qualitative Characteristics of Financial Info - Accountingverse
4. Capital and Revenue Expenditures | Definition & Example
5. Capital vs. Revenue Expenditures | Definition and Difference
6. Qualitative Characteristics of Accounting Information
7. The Qualitative Characteristics of Financial Information
8. 6 Elements of a Good Financial Design Statement - ActivReporter