straight line depreciation mehtod

Straight line depreciation or Original cost method | definition – example

Definition of straight line depreciation A straight line method of depreciation requires a fixed amount of depreciation to be charged on the assets every year. This method also called original cost method, fixed installment method, equal installment method. The depreciation is calculated on the original cost of the assets. The original cost is the acquisition …

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capital expenditure revenue expenditure

Capital expenditure and Revenue expenditure | differences and definition

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 …

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