If it is finance lease then it is capital expenditure otherwise it s revenue expenditure
Payable towards capital (equipments) 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.
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
Yes, the federal exercise duty is a 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.
Can an expenditure component be negative
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
Payable towards capital (equipments) 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
Yes, the federal exercise duty is a capital expenditure.
Introduction expenditures
Check out the related link to see the difference between capital expenditure and recurrent expenditure as well as some examples.