Scribd Logo
Upload

Welcome to Scribd!

  • Difference Between Capital Expenditure or Revenue Expenditure

    Uploaded by

    Srinith i
    6 views10 pages
    Capital expenditures are expenses to acquire or improve assets that are used for more than one year, such as new equipment or buildings. Revenue expenditures are recurring costs to maintain day-to-day operations, such as salaries, utilities, and office supplies. Capital expenditures provide long-term benefits and appear as assets on the balance sheet, while revenue expenditures only provide short-term benefits and appear on the income statement. The key differences are the purpose of the spending, the duration of benefits, and how they are treated on financial statements.

    Original Description:

    Original Title

    Untitled

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Capital expenditures are expenses to acquire or improve assets that are used for more than one year, such as new equipment or buildings. Revenue expenditures are recurring costs to maintain day-to-day operations, such as salaries, utilities, and office supplies. Capital expenditures provide long-term benefits and appear as assets on the balance sheet, while revenue expenditures only provide short-term benefits and appear on the income statement. The key differences are the purpose of the spending, the duration of benefits, and how they are treated on financial statements.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views10 pages

    Difference Between Capital Expenditure or Revenue Expenditure

    Uploaded by

    Srinith i
    Capital expenditures are expenses to acquire or improve assets that are used for more than one year, such as new equipment or buildings. Revenue expenditures are recurring costs to maintain day-to-day operations, such as salaries, utilities, and office supplies. Capital expenditures provide long-term benefits and appear as assets on the balance sheet, while revenue expenditures only provide short-term benefits and appear on the income statement. The key differences are the purpose of the spending, the duration of benefits, and how they are treated on financial statements.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 10

    Difference between

    capital expenditure or
    revenue expenditure
    Definition
    Capital expenditure Revenue expenditure
    Expenditure incurred for Expense incurred for maintain
    acquiring asset, to enchance the day today activities of a
    the capacity of an existing business.
    asset that result to increase its
    life span.

    2
    tenure
    Capital expenditure Revenue expenditure
    Long term Short term

    3
    Value addition
    Capital expenditure Revenue expenditure
    It enhance the value of an It does not enhance the value
    existing asset. of an existing asset.

    4
    Physical presence
    Capital expenditure Revenue expenditure
    It has physical presence It does not have physical
    except intangible asset. presence except intangible
    asset.

    5
    Occurance
    Capital expenditure Revenue expenditure
    Non recurring in nature. Recurring in nature.

    6
    Impact on revenue
    Capital expenditure Revenue expenditure
    Do not reduce business It will reduce business
    revenue. revenue.

    7
    Potential benefits
    Capital expenditure Revenue expenditure
    Long term benefits for Short term benefits for
    business. business .

    8
    Appearance
    Capital expenditure Revenue expenditure
    It will appear as asset in the It always appear in the
    balance sheet and some income statement.
    portion of amount will be
    appear in income statement.

    9
    Thanks!
    + By: Srinithi C
    + Reg no: 20BCO252

    10

    You might also like