Wat is the diff.between revenue and capital expenditure?
Wat is meant by deffered revenue expenditure?
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Answer Posted / 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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