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Wat is the diff.between revenue and capital expenditure?
Wat is meant by deffered revenue expenditure?
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Answer / uppu venkat (mba)
REVENUE EXPEDITURE MEANS AN EXPENDITURE THAT INCURRED IN
THE COURSE OF REGULAR BUSINESS TRANSACTIONS OF A CONCERN.
FOR EXAMPLE THE BENFIT OF THE ASSET GIVES ONE ACCOUNTING
PERIOD.
CAPITAL EXPENDITUE MEANS AN EXPENDITURE ,WHICH HAS BEEN
INCURRED FOR THE PURPOSE OF OBTAINING A LONG TERM ADVATAGE
FOR THE BUSINESS.
FOR EXAMPLE THE BENFIT WILL GIVE MORE THAN ONE ACCOUNTIG
PERIOD.
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Answer / veeresh dv
Capital expenditure means the amount spent. Capital
expenditure results either in the acquisition of an assets
or an improvement or extension to an existing assets as
result in adding to the earning capacity of that asset
either by increasing the output or reducing the cost of
production. The list of usual capital expenditure are cost
of goodwill, cost of freehold land and building an the
legal charges incurred in this connection etc.
All expenses incurred in running a business such as salaries
, wages, rent, lighting, stationary etc. are classed as
revenue expenditure. Beside expense incurred in putting the
fixed assets in proper order by repairs and renewals are
also revenue expenditures.
Where an amount is expended on an existing on an asset by
way of structural alterations, the question as to whether
such expenditure should be capitalized or be treated as a
revenue charge, will depend on how for such expenditure has
helped to add the earning capacity of asset in
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Answer / niraj
capital expenditure: benifits for more then one accounting
period
revenue expenditure: general expenses for day to day for
the company,
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Answer / ankit jaiswal
capital expenditure are those expenditure which are met to
aquire a asset, ENHANCE THE EARNING CAPABILITY OF A ASSET,
or to install to working condition to any asset.
capital expenditur either decreases a liability or ,
increases an asset wheras,
revenue expanses are met to maintain the earning capability
of asset ,are recurring innature & are usually exhausted in
one accounting period.
ex- mainatainence of machiner is revenue expe.
wheras upggradion or installation of same machinery is
capital expenditure
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