why to ifferentiate between capital and revenue expenditure?

Answer Posted / 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



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What are different types of reports made in tally

1800


please specify some books name in preparing a bank exam apttirutude questions

1545


What is Home Loan Modification?

1714


An applicant paid excess amount to the Government Office through a demand draft for a particular permission/license instead of actual fees. Later he went to government office and requested to return the previously submitted demand draft. Can he get back the Previously submitted demand draft(which was not adjusted into government account) duly paying he actual fee?

1522


EXPAND______________ICC

1740






Data flow of Accounts payable to General ledger?

1241


Who is called consignor

1481


what is similarites between tata motors and airtel

2164


what is non stock?

2211


What is the basic difference between pledge, hypothication and mortgage????

1831


What is specific reserve

2014


Entrance Exam question & Answer required

1502


Expand---------MRDT

1788


what is account & what is finance

1741


How does the accounting treatment of a partner's salary differ from that of an employee's salary in a partnership?

1724