Revenue activities could be defined as day to day activities that occur for the enterprise and are usually small in value.Capital activities are those which occur not so often and are characterized by large values.Capital activities always create an asset or a liability.
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
if you recored revenue expediture as capital expediture your profit will be decrease by that amount
Because it is important. Capital expenditure = non-deductible Revenue expenditure = deductible
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.
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.
capital expenditure.
Expenses are overstated and assets are overstated
Expenses are overstated and assets are overstated