which accounting principle makes the distinction between capital and revenue items - Accountancy - Theory Base of Accounting

Question

which accounting principle makes the distinction between capital
and revenue items?

Neha Arora · Accepted Answer

Dear Student,

It is the matching principle that distinguishes between capital and
revenue items This principles states that revenues must be recorded
in the same time period as the expenses incurred to generate them
or expenses must be recorded in the same time period as the
revenues generated through them And so, we can say that it is the
matching principle that distinguishes the capital items from the
revenue items

which accounting principle makes the distinction between capital and revenue items?