Question

What is meant by capital expenditure and revenue expenditure?

Answer 1

Hi..
Capital expenditure refers to the amount of money spent by a business on acquiring or maintaining fixed assets, like land, buildings, and equipment.

Revenue expenditure refers to an amount that is expensed immediately that is day to day expenses in running of a business.

Hope it helps u out.

Answer 2

Capital expenditures are for fixed assets, which are expected to be productive assets for a long period of time. Revenue expenditures are for costs that are related to specific revenuetransactions or operating periods, such as the cost of goods sold or repairs and maintenanceexpense.