Answer Posted / vpnarasimhan@gmail.com
Capital expenditure is an expenditure incurred on Capital
Items. For example if you are owning a cinema theater and if
you spend money to air-conditioned the auditorium - its a
capital expenditure - because the value has increased in
assets after meeting out the above expense and if
capitalized it. On the contrary if you increase the number
of seats further to increase the income its called as a
'revenue expenditure' This is due to more capacity more no.
of tickets can be sold. Ultimately income increases.
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