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.
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.
Expenditure is money going out, revenue is money coming in.
that's no hep!! tut tut!
They are synonyms.
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
revenue expenditurerevenue expenditure
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).
Budget for a fiscal year is a statement of revenue and expenditure of the government for the particular year. If the expenditure is more than the revenue for a particular year, then this difference is called the fiscal deficit. If the revenue is more than the expenditure for a particular year then this difference is called the excess revenue.
if you recored revenue expediture as capital expediture your profit will be decrease by that amount
revenue is income and expenditure is an expense
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