State and two distinction between Capital expenditure and Revenue expe

1.	State and two distinction between Capital expenditure and Revenue expenditure.
Answer» (i) Capital Expenditure increases earning capacity of business whereas revenue expenditure is incurred to maintain the earning capacity. (ii) Capital expenditure is incurred to acquire fined assets for operation of business whereas revenue expenditure is incurred on day-to-day conduct to business.

State and two distinction between Capital expenditure and Revenue expenditure.

Answer»

(i) Capital Expenditure increases earning capacity of business whereas revenue expenditure is incurred to maintain the earning capacity.

(ii) Capital expenditure is incurred to acquire fined assets for operation of business whereas revenue expenditure is incurred on day-to-day conduct to business.

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State and two distinction between Capital expenditure and Revenue expenditure.

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