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Distinguish between capital expenditure & revenue
expenditure
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Answer Posted / shubha
Capital Expenditure is non-recuring exp, ie the benifits of
such expenditure is not only reaped in the accounting period
in which it is incurred, but also in the subsequent
accounting period.
Revenue expenditure is recurring expenditure. The benifits
of such expenditure is reaped in the same accounting period
in which it is incurred.
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