1.

What is Revenue Expenditure? Give any four points of differences between Capital Expenditure and Revenue Expenditure.

Answer»

Revenue Expenditure:

It is incurred for day to day running of the business.

Capital ExpenditureRevenue Expenditure
It increases the earning capacity of business.It maintains the earning capacity of business.
It is incurred to acquired fixed assets for operation of the business.It is incurred to conduct day to day business.
It is recurring in nature.It is non-recurring in nature.
It benefits more than one accounting year.It normally benefits for one accounting year.
It is shown in Balance Sheet.It is shown in Trading and Profit & Loss Account.


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