Archive | Revenue Expenditure

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 has been consumed in the [...]

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 would lead to increase the [...]