Distinguish between revenue expenditure and capital …
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Posted by Manju Vijayan 5 years, 4 months ago
- 3 answers
Megha Gupta 5 years, 3 months ago
Yogita Ingle 5 years, 4 months ago
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Capital Expenditure |
Revenue Expenditure |
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Definition |
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| Expenditure incurred for acquiring assets, to enhance the capacity of an existing asset that results in increasing its lifespan | The expense incurred for maintaining the day to day activities of a business |
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Tenure |
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| Long Term | Short term |
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Value addition |
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| Enhances the value of an existing asset | Does not enhance the value of an existing asset |
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Physical existence |
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| Have a physical presence except for intangible assets | Do not have a physical presence |
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Occurrence |
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| Non-recurring in nature | Recurring in nature |
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Megha Gupta 5 years, 3 months ago
1Thank You