Revenue expenditure are those for which company has spend money but not yet took the benefits of them as soon as company take benefits of those expenditure, it become expanse.
For Example:
Inventory purchase for 3 months of production is revenue expenditure but when this inventory utilized in production then the portion of utilized inventory become expanse.
revenue is income and expenditure is an expense
Expenditure is money going out, revenue is money coming in.
They are synonyms.
capital expenditure.
revenue expenditure
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.
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
Net 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.
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.
Revenue expenditure are those for which company has spend money but not yet took the benefits of them as soon as company take benefits of those expenditure, it become expanse. For Example: Inventory purchase for 3 months of production is revenue expenditure but when this inventory utilized in production then the portion of utilized inventory become expanse.
Yes, there is a significant difference between revenue and expenditure in a freight forwarding business. Revenue refers to the income generated from services provided, such as shipping and logistics fees charged to customers. In contrast, expenditure encompasses the costs incurred in operating the business, including transportation fees, labor expenses, and overhead costs. Understanding this distinction is crucial for assessing the financial health and profitability of the business.