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.
Q&A Related to "What Is the Difference between Capital and Revenue..."
Revenue expense are costs in the for day to day running of the business for example servicing a machine, spare parts etc. Revenue expenditure is normally charged against profit in
One of the most basic concepts behind accrual basis accounting is the Matching Principle. It requires accountants to recognize expenses in the same time period as the revenues that
capital expenditure is like having upgraded ur computer to give more output i.e.,it increases efficiency and total product from the asset revenue expenditure is ur daily expenditure
Jason, Thanks for your question. A capital expenditure is a cost of acquiring a fixed asset or the like and is recorded as an asset. A revenue expenditure is one that benefits only
1 Additional Answer
Ask.com Answer for: 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.
Explore this Topic
Revenue is defined as spending on day-to-day items to run services while capital is spending on significant assets that will have a life of many years, such as ...
About -  Privacy -  Careers -  Ask Blog -  Mobile -  Help -  Feedback  -  Sitemap  © 2014 Ask.com