What Is the Difference between Capital and Revenue Expenditure?
Capital expenditure refers to an expense resulting in acquisition of an asset or increase in the earning capacity of a business. Revenue expenditure is defined as an expense that is essential for the maintenance of earning capacity of a business.
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what is the difference between capital and revenue expenditure
Capital expenditures are funds used to acquire or upgrade fixed assets that will benefit the business in the future. Revenue expenditures are expenses incurred for daily operation but have a shorter term benefit.