Answer / raj

Reveneu Expenditure are those types of expenses which are
recurring in nature and are requred in the daily
functioning of the business for e.g. staff salary, rent etc
whereas capital expenditure are non recurring and are not
made every day they are generally made to generate revenue
for the organization in the future for e.g. Plant &
Machinery.

Answer / bharat kumar

REVENUE EXP. AS WHICH EXPENSES JUST LIKE REPARING ON
MACHINERY,BUILDING,PLANT, SALARY , RENT ETC. THESE EXP.
PROFIT COULD BE RECEIVABLE PER YEAR. AND CAPITAL
EXPENDITURE THESE EXPENSES JUST LIKE LONG TERM EXPENDITURE
PURCHASE OF FIXED ASSETS AS MACHINERY,LAND,BUILDING ETC.

Answer / nani

Business expenditure can be classified in to capital
expenditure and Revenue expenditure.
An amount which spends on Long-term assets is called as
capital expenditure.
Plan, Machinery, Buildings are the examples for Long-term
assets
An amount which spends on goods and services is called as
Revenue expenditure
Wages, rent are the examples

Answer / deepa

The Expenditure which gives benefit more than a year is
capital expenditure

Ex.Purchase of Machinery,Buildings etc


The expenditure which gives benefit within a year is
revenue expenditure


Ex. Salaries, etc

Answer / devisri

capital exp give d benifit towards d company more than one
year similarlly revenue exp gives d benifit to d company
with in one year.

Answer / swetha

captial long term expenditure.
recareing expenditure.

Answer / deepti sharma

Capital expenditure is not shown in profit and loss account whereas Revenue expenditure is shown in P&L Account.

Answer / akanksha saini

CAPITAL EXPENDITURE
Outlay resulting in the increase or acquisition of an asset
or INCREASE in the earning capacity of a business
REVENUE EXPENDITURE
Outlay as is necessary for the MAINTENANCE of earning
capacity including the upkeep of the fixed assets in a fully
efficient state.
SALIENT POINTS TO NOTE
1. Accounting fraud occur because management choose to
classify should be revenue expenditure as capital
expenditure. The should be revenue expenditure should be
taken up into the Income Statement but instead now being â
€œsuspended” or deferred into the Balance Sheet. In the
process, lesser expenses are being charge into the Income
Statement, hence profit are overstated to impress the
investors or outsiders
2. Strong GAAP and Accounting standards have classified
what should be assets, what should be deferred in the
balance sheet so that there should be a clearer
demarcation between Capital and Revenue expenditure
3. We need to note that certain expenses are recognized as
being of a capital nature, although no tangible property may
have been acquired as a result. Examples are research and
development expenditure, pre-incorporation and preliminary
expenses, interest on borrowings for building, legal
expenses to acquire property, additional renovations to
properties and others
4. The classification of what is capital expenditure of a
company might not applies to another company that is not in
the same industry. Say in a property based company, most
land and buildings are revenue expenditure as they are
purchase with the intent for re-sale.
5. As we learned from the above, when the purpose of
expenditure is to Maintain the business it is revenue and if
it is to Improve the business it is capital. However, at
times in a company, the classification of pure capital or
revenue expenditure in a company is not so straightforward
especially when there is a mixture of both capital and
revenue expenditure in nature.

Answer / k,subbareddy

capital expenditure means evaparate our capital
revenue expenditure means evaparae others capital

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