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..Capital expenditure is an expenditure incurred in acquiring a fixed asset and any other cost incurred in putting the asset in a usable condition like cost of transportation, installation and cost.
Capital expenditures are the costs of starting a business, such as fixtures and equipment. Revenue expenditures are the costs of running a business, like payroll, rent and raw materials.
(I think; not 100% sure)
revenue expenditurerevenue expenditure
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
Capital expenditure is spending from your savings (eg buying a house), Revenue expenditure is spending from your wages (eg buying a beer).
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
if you recored revenue expediture as capital expediture your profit will be decrease by that amount
Because it is important. Capital expenditure = non-deductible Revenue expenditure = deductible
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.
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.
capital expenditure.
Expenses are overstated and assets are overstated
Expenses are overstated and assets are overstated