Archive | Revenue Expenditure

Top 2 Types of Revenue Expenditure (With Diagram)

Here we detail about the two types of revenue expenditures, i.e., (i) Direct Expenses and (ii) Indirect Expenses. The above diagram presents the circular flow of production and a dotted line demarcate the expenses into direct and indirect. The expenses falling above the dotted line are direct and expenses below the dotted line are indirect […]

Deferred Revenue Expenditure (Case Studies)

This article provides a short note on deferred revenue expenditure. Sometimes, it may happen that the business enterprise may incur revenue expenditure, but the amount is so heavy that the benefit of the same would last for numbers of years. In that case, such expenditure should be capitalized and treated as deferred revenue expenditure. Sometimes, […]

Deferred Revenue Expenditure (Case Studies)

This article provides a short note on deferred revenue expenditure. Sometimes, it may happen that the business enterprise may incur revenue expenditure, but the amount is so heavy that the benefit of the same would last for numbers of years. In that case, such expenditure should be capitalized and treated as deferred revenue expenditure. Sometimes, […]

Capital and Revenue Expenditure: Concept and Guidelines for Determining It

Here we detail about the concept and guidelines for determining capital and revenue expenditure. Capital Expenditure: A payment and/or incurrence of outlay for a purpose, other than the settlement of an existing liability are known as expenditure. It should be noted that expenditure is a wider term and includes expenses. A part of expenditure that […]

Difference between Capital and Revenue Expenditure

Here we detail about the difference between capital and revenue expenditure. Capital Expenditure: 1. Capital expenditure is non-recurring in nature. 2. The purpose of incurring capital expenditure is to acquire fixed assets for use in the business enterprise. 3. The benefit of capital expenditure is usually for more than one accounting year. 4. Capital expenditure […]

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