Capital Expenditure and Revenue Expenditure
Repair and maintenance expenditure on fixed assets. Enhances the value of an existing asset. Difference Between Financial Statement Capital Expenditure Meant To Be Cost of operating a fixed asset. . It includes the costs used to ensure the proper functioning of a fixed asset repair costs maintenance costs and costs that are incurred for current operations. Its benefits accrue for a long time to the business say for 10 to 15 years. Its benefits accrue to the business for a future period say for 3 to 5 years. Examples of capital expenditures are as follows. Revenue expenditure is the expense that is used to run your business on a daily basis. A capital expenditure refers to the expenditure of funds for an asset that is expected to provide utility to a business for more than one reporting period. Does not enhance the value of an. SBA is given on capital expenditure incurred on the construction conversion or r
