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capital expenditure , revenue expenditure
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Answer / a.madhu sudhan rao
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
| Is This Answer Correct ? | 21 Yes | 2 No |
Capital Expenditure : Expenditure incurred for the
particular purpose and the benefit enjoyed for the ever
lasting future.
Revenue Expenditure : Expenditure incurred for the
particular purpose and the benefit enjoyed within the
accounting period.
| Is This Answer Correct ? | 14 Yes | 3 No |
Answer / richard maina
Capital expenditure incurred in acquisation or renovation
of fixed asset whose benefits are realized in a number of
years in future:eg purchase of a building
revenue expenditure are incurred in day to day running of
business.eg electricity bills.
| Is This Answer Correct ? | 9 Yes | 0 No |
Answer / waqar hussain
if the company incured the expenditure and enjoy the
benefit for more than one accounting period is called
capital expenditure. e.g. company purchase fixed asset for
the production of goods.
if the company incured the expenditure for the operation of
business and enjoy the benefit from such expenditure up to
one year is called revenue expenditure. e.g. purchase the
floating assets of the business.
(floating assets means raw material of busines)
| Is This Answer Correct ? | 4 Yes | 1 No |
Answer / bharathi.c
Revenue Expenditure means the expenses incurred to earning capacity of business in a current period is called as revenue expenditure.
example:rent,power,salaries etc...
where as capital expenditure means any amount spent to increase the earning capacity of the asset is called as capital expenditure.
example:expenditure on plant & machinery,properti etc..
| Is This Answer Correct ? | 0 Yes | 0 No |
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