As photocopier cartridge is assumed to be fully utilized in one fiscal year and it also not have very high value that's why it is considered as revenue expenditure.
it can not be because it is keeping the car running not adding value
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
Payable towards capital (equipments) expenditure.
negative 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.
Purchase of kitchen equipment.
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.
it can not be because it is keeping the car running not adding value
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.
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
Payable towards capital (equipments) expenditure.
negative expenditure
why capital expenditure are difference from normal day to day 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.
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
Capital expenditure is spending from your savings (eg buying a house), Revenue expenditure is spending from your wages (eg buying a beer).
Introduction expenditures