Distinguish between the accounting for capital expenditures and revenue expenditures. What is the key difference between the two? Go online and type in your favorite search engine, "capital expenditure policy." Why do you think there needs to be a policy about capital expenditures? Keep in mind, how each type impacts the financial statements. Please read below taken from Chapter nine:

Ethics: Don't Do It! Capital Crime

One of the largest accounting frauds in history involved the improper accounting for maintenance expenditures. WorldCom, the second largest telecommunications company in the United States at the time, improperly treated maintenance expenditures on its telecommunications network as capital expenditures. As a result, the company had to restate its prior years' earnings downward by nearly $4 billion to correct this error. The company declared bankruptcy within months of disclosing the error, and the CEO was sentenced to 25 years in prison.