1. Give an example each of capital expenditure and revenue expenditure.
Answers
Answer:
1. Capital expenditures are long-term investments, meaning the assets purchased have a useful life of one year or more. Types of capital expenditures can include purchases of property, equipment, land, computers, furniture, and software.
Example
An example of an expenditure is the money spent on office equipment that you have purchased. ... The act or process of expending; outlay
2.Revenue expenditures are short-term expenses used in the current period or typically within one year. Revenue expenditures include the expenses required to meet the ongoing operational costs of running a business, and thus are essentially the same as operating expenses (OPEX).
Example
1.Routine repair/update costs on equipment.
2.Smaller-scale software initiative or subscription.
3.Cost of goods sold.
4.Rent on a property.
5.Salaries and wages.
6.Insurance.
7.Advertising.
Answer:
1. Capital expenditures are long-term investments, meaning the assets purchased have a useful life of one year or more. Types of capital expenditures can include purchases of property, equipment, land, computers, furniture, and software.
Example
An example of an expenditure is the money spent on office equipment that you have purchased. ... The act or process of expending; outlay
2.Revenue expenditures are short-term expenses used in the current period or typically within one year. Revenue expenditures include the expenses required to meet the ongoing operational costs of running a business, and thus are essentially the same as operating expenses (OPEX).