Question

Identify the value involved in classifying the expenditure into capital and revenue ​

Answer 1

Answer:Capital Expenditures and Revenue Expenditures

To know about the capital expenditures and revenue expenditures, first of all, it is very important to know about the meaning of expenditure beforehand. Expenditure is basically spending of funds or money to avail services or for purchasing. Let’s take a look.

Expenditure

Expenditure means spending on something. This can be a payment is cash or can also be the exchange of some valuable item in exchange for goods or services. It is the process of causing a liability by a commodity. Receipts and invoices keep the records of expenditures. An expense is a word very similar to expenditure but expense shows the deduction in the value of the asset while expenditure simply denotes the obtaining of assets. Two types of expenditures are present on the basis of time durations, That is

1. Capital expenditures
2. Revenue expenditures

Explanation: