Distinguish between capital expenditure and revenue expenditure. – InterviewSolution

1.

Distinguish between capital expenditure and revenue expenditure.

Answer»

S. No.	Capital Expenditure	Revenue Expenditure
1	Purchase cost of fixed assets.	Maintenance expenses of fixed assets
2	Purchase cost of long term investments.	Insurance premium
3	Expenses to increase the earning the earning capacity of fixed assets.	Postage and stationery.

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