capital expenditure is a Increase or acquisition of Assets to business or increased earnings in business is called capital expenditure
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
Payable towards capital (equipments) expenditure.
negative expenditure
Recurrent or Revenue Expenditure are those expenditure the benefits of which are utilized by company in one single year and capital expenditure are those expenditure the benefits of which are utilized for morethan one fiscal year. Revenue expenditure Example: Inventory etc Capital Expenditure : plant, machinery, building etc.
capital expenditure those expenditure it will recurring in nature
capital expenditure is a Increase or acquisition of Assets to business or increased earnings in business is called capital expenditure
The format for capital expenditure budget is to list all the expenditure with their estimates. The cost of capital assets and expenditure must be provided.
The format for capital expenditure budget is to list all the expenditure with their estimates. The cost of capital assets and expenditure must be provided.
If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
Expenditure for which benefit is expected to be taken in one fiscal year from occurance of expenditure is called 'Revenue Expenditure" Expenditure for which benefit is expected to be taken for morethan once year is called 'Capital Expenditure'
Payable towards capital (equipments) expenditure.
negative expenditure
why capital expenditure are difference from normal day to day expenditure
Recurrent or Revenue Expenditure are those expenditure the benefits of which are utilized by company in one single year and capital expenditure are those expenditure the benefits of which are utilized for morethan one fiscal year. Revenue expenditure Example: Inventory etc Capital Expenditure : plant, machinery, building etc.
Capital expenditure is spending from your savings (eg buying a house), Revenue expenditure is spending from your wages (eg buying a beer).
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