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Difference between capital expenditure and revenue expenditure?
Wiki User
∙ 12y 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.
Wiki User
∙ 15y ago
Wiki User
∙ 12y agoRevenue 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.
Wiki User
∙ 10y agoCapital Expenditure:
These are those expenditures, the benefit of which is taken by company for more than one fiscal year, like land and building, machinery etc
Recurrent Expenditure:
These are those expenditures , the benefit of which is taken in one fiscal year like inventory, debtors etc
Wiki User
∙ 9y agoRevenue expenditures are those expenditures which relates to only one fiscal year while capital expenditures are related to more than one fiscal year.
Wiki User
∙ 16y ago== ==
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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.
Difference between expenditure management and revenue management?
Expenditure is money going out, revenue is money coming in.
What is the difference between capital and revenue expenditures and how each type of expenditure is disclosed in financial statement?
that's no hep!! tut tut!
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 is the difference between operating costs and revenue expenditure?
They are synonyms.
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
What is the Difference between fiscal deficit and revenue surplus?
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.
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
