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capital expenditure , revenue expenditure
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Answer Posted / waqar hussain
if the company incured the expenditure and enjoy the
benefit for more than one accounting period is called
capital expenditure. e.g. company purchase fixed asset for
the production of goods.
if the company incured the expenditure for the operation of
business and enjoy the benefit from such expenditure up to
one year is called revenue expenditure. e.g. purchase the
floating assets of the business.
(floating assets means raw material of busines)
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