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it must increase the value of the assets

in must increase the capacity

it must shown in the balance sheet

must be depreciated

amount must be comparatively huge

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Kara Wolf

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3y ago

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What is the difference between capital and revenue expenditures and how each type of expenditure is disclosed in financial statement?

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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


Examples of capital expenditure and revenue expenditure?

Capital expenditures are included in fixed asset costs. Examples of capital expenditures are purchase costs, legal charges delivery charges, and installation charges. Revenue expenditures include maintenance charges, renewal expenses, repair costs, and repainting costs.


What side of journal entries do revenue and capital expenditures go?

revenue is shown under credit side of income statement while capital expenditures are shown in balance sheet and shown under asset side.


What is meant by surplus and deficit?

For a government that taxes and spends, there is revenue (income) and expenditures (outlays). When the expenditures exceed the revenue, the difference is a deficit, also referred to as a "shortfall". When revenue exceeds expenditures, there is money left over, and this is a surplus.


Is total revenue the financial capital received from the consumers total expenditures?

Yes, the total revenue is the goods and services sold and receieved through the consumers. Such goods is the financial capital of the toal revenue.


What is main difference between capital budget and revenue budget?

While the capital budget and revenue budget are both budgets, the capital budget is incorporated for the long term. A revenue budget is made for the short term.


Is rent a capital or revenue expenditure?

Rent received or paid both are revenue expenditures as it is to be received or paid at every month time.


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.


Difference between capital income and revenue income?

Capital income is that income which is recevied or generated from sale of capital assets like shares or gold etc. Revenue income is that income which is generated from basic business operating activities.


Capital and revenue expenditure?

Capital expenditure includes costs incurred on the acquisition of a fixed asset and any subsequent expenditure that increases the earning capacity of an existing fixed asset. Where as, Revenue expenditure incurred on fixed assets include costs that are aimed at 'maintaining' rather than enhancing the earning capacity of the assets. These are costs that are incurred on a regular basis and the benefit from these costs is obtained over a relatively short period of time.


What is the difference between a revenue center and a support center?

what is the difference between revenue center and suport center