What is the difference between capital expenditure & revenue
expenditure

Answers were Sorted based on User's Feedback



What is the difference between capital expenditure & revenue expenditure..

Answer / venu gopal joshi

Capital expenditure is one which is incurred to earn revenue
income for the business.

Ex: Purchase of Machinery for production.

Revenue expenditure is incurred for running the business.

Ex:payment of salaries, Electricity bill etc.

Is This Answer Correct ?    5 Yes 0 No

What is the difference between capital expenditure & revenue expenditure..

Answer / deepak

capital expenditure are those expenditure which will
improve the earning capacity and will expand the capital on
the other hand revenue expanditure will maintain the
earning capacity

Is This Answer Correct ?    3 Yes 0 No

Post New Answer

More Accounting General Interview Questions

Hi Everybody, Can anybody tell me the journal entry for below question, Charged interest on Capital Rs.1,500.00 Thanks,

15 Answers  


how in the big companies the budget are prepared and controlled?

0 Answers   HCL,


Pls.tell me related purchase orders.

1 Answers   ABC,


What is Differed revenue expenditure?

8 Answers   Capital IQ, Genpact,


what is the finalisation of accounts,

1 Answers  






What is standing order

1 Answers   Capital IQ,


How can I pass the journal entry for work in progress for a construction company for every end of the period and what should be for next period? I would like to know the debit and credit should allocated where in an accounting system?

3 Answers  


Why Prepaid rent is treated as Personal Account?

1 Answers  


What will be the entry when deduct ESI @1.75% from the employees salary?Same as in the time of ESI of employer part @4.75% in tally posting? In PF posting in tally what will be the entry ?

0 Answers  


What Is Responsibility Accounting?

0 Answers  


what is contingent liabillity ?

6 Answers   Siemens,


When you prepare Profit and loss A/C either you will get profit or loss but not both.Then why we are saying it as profit AND loss A/C,why cannot we say it is as Profit OR loss account?

0 Answers  


Categories