Definition and difference between capital expenditure and revenue expenditure
A business incurs several expenditures during the year some of them are recurring in nature whereas others are non-recurring in nature. The non-recurring expenditure and recurring expenditure respectively called capital expenditure and revenue expenditure.
The capital expenditures treated as asset whereas revenue expenditures immediately treated as expenses and deducted from the revenues in the income statement. Capital expenditures increased the efficiency of the assets. And the revenue expenditures just maintain the original efficiency of the assets.
For e.g. capital expenditures include the purchase of the
For e.g. revenue expenditures includes salary, rent, wages, repairs, and maintenance, weighted washing of the building and so on.