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why to ifferentiate between capital and revenue expenditure?

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why to ifferentiate between capital and revenue expenditure?..

Answer / mail

CAPITAL EXPENDITURE IS LONG TREM EXPENDITURE FOR LONG TREM
BENIFIT A COMPANY OR ORGANISTION, REVENUE EXPENDITURE IS
SHORT TREM EXPENDITURE FOR SHORT TREM BENIFIT. CAPITAL
EXPENDIURE ARE LIKE LAND BUILDING ECT. REVENUE EXPENDITURE
LIKE ADMINISTRATIVE EXP. ECT

Is This Answer Correct ?    8 Yes 0 No

why to ifferentiate between capital and revenue expenditure?..

Answer / satheesh

Capital & Revenue expendeture both are different. We incur
capital expendeture for long-term obligation , revenue
expendeture for short-term obligations.

Is This Answer Correct ?    4 Yes 0 No

why to ifferentiate between capital and revenue expenditure?..

Answer / teja

capital expenditure is the expenditure incurred on long
term assets which gives us long term benifit mainly results
in acquisition of an asset ex:expenditure incurred on
goodwill,copyright.where as revenue expenditure is incurred
on short term assets mainly to maintain the earning
capacity or productivity of a business ex:repairs,rent

Is This Answer Correct ?    2 Yes 1 No

why to ifferentiate between capital and revenue expenditure?..

Answer / diwakar grover

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.

Is This Answer Correct ?    1 Yes 2 No

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