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Why is it necessary to distinguish between capital and revenue expenditure?
JimmieJr
- Then only they find the real profit or loss and financial position of the business
- Because the capital expenditure will take place to Balance sheet and revenue expenditure will go to profit and loss account. Capital expenditure also called asset of the business. These expenditure also called non-recurring nature expenses.
- Revenue expenditure also called recurring nature expenses.
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∙ 14y ago
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Why is it necessary to distinguish between capital and revenue?
Then only they find the real profit or loss and financial position of the businessBecause the capital expenditure will take place to Balance sheet and revenue expenditure will go to profit and loss account. Capital expenditure also called asset of the business. These expenditure also called non-recurring nature expenses.Revenue expenditure also called recurring nature expenses.
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
What is the differentiate between capital expenditure and recurrent expenditure and what are some examples?
Check out the related link to see the difference between capital expenditure and recurrent expenditure as well as some examples.
What is the difference between capital income and capital expenditure?
Income is money coming in, expenditure is money going out (spending).
Differentiate between capital expenditure and recurrent expenditure with example?
capital expenditures is expenses on assets and infrastructure while recurrent expenditure is expense on liabilities or things that keep on happening
What are the principles of comparative and absolute advantage and their relevance in the development of third world countries?
what is the difference between capital and current expenditure what is the difference between capital and current expenditure
Distinguish 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.
What is the format for capital expenditure?
The format for capital expenditure budget is to list all the expenditure with their estimates. The cost of capital assets and expenditure must be provided.
What is the format for capital expenditure budget?
The format for capital expenditure budget is to list all the expenditure with their estimates. The cost of capital assets and expenditure must be provided.
Is leasing a capital expenditure?
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
What is capital expenditure creditor?
Payable towards capital (equipments) expenditure.
What is a negative capital expenditure?
negative expenditure
