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Capital and Revenue Expenditures 03-07
Capital and Revenue Expenditures 03-07
EXPENDITURES
CAPITAL EXPENDITURE:
It means an expenditure which has been incurred for
the purpose of obtaining a long-term advantage for the business.
Such expenditure in either incurred for acquisition of an asset
(tangible or intangible ) which can later be sold and converted
into cash or which result in increasing the earning capacity of the
business or some other advantages to the business.
REVENUE EXPENDITURE:
An expenditure that arises out of and in the courses
of regular business transactions. It may simply be termed as
“expense”.