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What are the similarities between capital expenditure and revenue expenditure?
Wiki User
∙ 10y ago
Revenue expense are costs in the for day to day running of the business for example servicing a machine, spare parts etc. Revenue expenditure is normally charged against profit in the Income statement in the year it is expensed.
Capital expenditure is on an item that will help generate profits over the longer term (12 months or more) so a purchase of a machine or van etc. The item is depreciated over the items useful life and each depreciateable amount is charged to the Income statement in the year the item has help generate profit.
Cecile Heidenreich
Wiki User
∙ 9y agoA capital expenditure is the expenditure made to other assets or items which will still be used in the money making process of the business. A fixed cost may not necessarily bring about future benefits.
Wiki User
∙ 10y agocapital expenditures are for things like machinery and buildings
revenue expenditures are for thing the create the revenue like labor and advertising.
nora alamri
nora alamri
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Which city is known as the financial capital of India?
London is the financial capital of Britain.
What is charged expenditure on consolidated fund of India?
Article 266 of the constitution states the revenue collected, loans raised and income generated by the govt of India shall be kept under consolidated fund. This fund is kept at the disposal of the parliament. i.e no penny can be used without the sanction of the parliament. Also it is a constitutional fund and is also the largest fund of GoI.
Where is the Canadian Customs and Revenue Agency located?
The Canadian Customs and Revenue Agency existed between 1999-2003 as the result of the combining of the Department of National Revenue and Canada Customs, The CCRA was consequently divided into the Canada Border Services Agency and the Canada Revenue Agency. These Agencies can be located across Canada in each of the Canadian provinces/territories operating from their own local office.
What is the total revenue Canada tax revenue?
See 'related links'.
Who is the Minister of National Revenue for Canada?
Kerry-Lynne Findlay is the Minister of National Revenue for Canada.
What will be paid water charges to the muncipal committee a capital expenditure or revenue expenditure?
revenue expenditurerevenue expenditure
Is leasing a capital expenditure?
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
What differentiates capital expenditure from revenue expenditure?
Capital expenditure is spending from your savings (eg buying a house), Revenue expenditure is spending from your wages (eg buying a beer).
If a capital expenditure is treated as a revenue expenditure then?
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
Explain the difference between capital and revenue items of expenditure and 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.
What would happen if you recorded a capital expenditure as a revenue expenditure?
if you recored revenue expediture as capital expediture your profit will be decrease by that amount
What is between revenue and expenditure?
revenue is income and expenditure is an expense
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
The cost of a new windshield wiper on a delivery truck would be classified as a capital expenditure or revenue expenditure or an infrequent expense?
revenue expenditure
Is depreciation 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.
What are the item's of capital expenditure and recurrent 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.
Is the expense incurred in acquiring patent rights a revenue expenditure?
capital expenditure.
