What is Revenue expenditure??
@Shreya❤️
Answers
The differences between capital expenditures and revenue expenditures include whether the purchases will be used over the long-term or short-term. Capital expenditures (CAPEX) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment.Capital expenditures are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period. Revenue expenditures are typically referred to as ongoing operating expenses, which are short-term expenses that are used in running the daily business operations.
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Revenue expenditures are short term expenditures that are used in the current period or typically within a year. For example: salary expenses, utility expenses, rent expenses, insurance expenses, commission expenses, etc.