it must increase the value of the assets
in must increase the capacity
it must shown in the balance sheet
must be depreciated
amount must be comparatively huge
Capital expenditure are those the benefits of which will be taken for more than one fiscal year while for revenue expenditure benefits are only for one fiscal year.
revenue expenditurerevenue expenditure
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
Now, if a capital expenditure is treated as a revenue expenditure, then the expenses would be overstated and also the Fixed assets would be overstated
if you recored revenue expediture as capital expediture your profit will be decrease by that amount
Capital expenditure are those the benefits of which will be taken for more than one fiscal year while for revenue expenditure benefits are only for one fiscal year.
Expenditure is money going out, revenue is money coming in.
that's no hep!! tut tut!
They are synonyms.
revenue expenditurerevenue expenditure
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
Capital expenditure is spending from your savings (eg buying a house), Revenue expenditure is spending from your wages (eg buying a beer).
Now, if a capital expenditure is treated as a revenue expenditure, then the expenses would be overstated and also the Fixed assets would be overstated
Budget for a fiscal year is a statement of revenue and expenditure of the government for the particular year. If the expenditure is more than the revenue for a particular year, then this difference is called the fiscal deficit. If the revenue is more than the expenditure for a particular year then this difference is called the excess revenue.
if you recored revenue expediture as capital expediture your profit will be decrease by that amount
revenue is income and expenditure is an expense
Because it is important. Capital expenditure = non-deductible Revenue expenditure = deductible