0
Revenue expenditures are those expenditures which are incurred more than once in a fiscal year and benefits are for only one fiscal year while capital expenditures are those expenditure the benefits of which are taken by company for more than one fiscal years.
Wiki User
∙ 10y ago
Wiki User
∙ 12y agoCapital expenditure is an expenditure incurred in acquiring a fixed asset and any other cost incurred in putting the asset in a useable condition like cost of transportation, installation and cost of remarkably improving the performance of the asset. The benefits of this cost is not fully consumed in one accounting period but spreads over several periods.
Revenue expenditure on the other hand are expenditure incurred in the daily running of the business, and their benefits are used-up within an accounting
Add your answer:
Earn +20 pts
What will be paid water charges to the muncipal committee a capital expenditure or revenue expenditure?
revenue expenditurerevenue expenditure
Is leasing a capital expenditure?
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
What differentiates capital expenditure from revenue expenditure?
Capital expenditure is spending from your savings (eg buying a house), Revenue expenditure is spending from your wages (eg buying a beer).
If a capital expenditure is treated as a revenue expenditure then?
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
Explain the difference between capital and revenue items of expenditure and income?
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.
What would happen if you recorded a capital expenditure as a revenue expenditure?
if you recored revenue expediture as capital expediture your profit will be decrease by that amount
What is between revenue and expenditure?
revenue is income and expenditure is an expense
Why it is important to distinguish capital expenditures from revenue expenditures for tax purpose?
Because it is important. Capital expenditure = non-deductible Revenue expenditure = deductible
The cost of a new windshield wiper on a delivery truck would be classified as a capital expenditure or revenue expenditure or an infrequent expense?
revenue expenditure
Is depreciation revenue expenditure?
Yes depreciation is a revenue expenditure as it incurs every year to generate revenue and capital expenditure is that expenditure which is incurred for one time to earn revenue for more than one fiscal year.
What are the item's of capital expenditure and recurrent expenditure?
Recurrent or Revenue Expenditure are those expenditure the benefits of which are utilized by company in one single year and capital expenditure are those expenditure the benefits of which are utilized for morethan one fiscal year. Revenue expenditure Example: Inventory etc Capital Expenditure : plant, machinery, building etc.
Is the expense incurred in acquiring patent rights a revenue expenditure?
capital expenditure.
