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There are two kinds of expenditure- capital and revenue. Capital expenditure is a long-term expenditure. In contrast to capital expenditure revenue expenditure is a routine expenditure that occurs in the normal business. It is important to understand the differences between capital and revenue expenditure. When it comes to providing Capital and Revenue Expenditure assignment help, BookMyEssay is the ultimate choice. We have a team of accounting assignment experts who offer affordable work without compromise.

What is Capital and Revenue Expenditure?

Capital expenditures are expenses made for acquiring assets or improve the capacity of assets. Revenue expenditures are routine expenditures, incurred in routine business activities. Capital expenses are incurred for the acquisition of long-term assets including manufacturing or facilities equipment. A large amount of expenditure is capitalized, thus the expenditure is spread over the remaining life of a useful asset.

Capital expenditures are used by companies for upgrading, acquiring, and maintaining physical assets. They are used for undertaking new investments or new projects by a company.


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Revenue expenditure is the expense incurred regularly for performing the operational activities of a company such as the purchase of carriage, stock, freight, etc. Revenue is recognized when they are earned and expenditure is recognized while they are incurred.

Revenue expenditure is charged to an income Statement. This meets the Accounting fundamental principle known as Matching Principle wherein expenses are recorded when they occur. BookMyEssay professionals understand the need for students and therefore they come up with accurate Capital and Revenue Expenditure essay writing solutions. We can help you secure good grades.

Major Differences Between Revenue and Capital Expenditure

The key differences between revenue and capital expenditure are highlighted in our help with assignment online for Capital and Revenue Expenditure as follows:

  • Capital Expenditure gives future economic benefits and revenue expenditure gives profit for the present year.
  • Capital Expenditure is a one-time investment while revenue expenditure happens frequently.
  • Capital expenditure is depicted in the asset side of the Balance Sheet and depreciation in the Income Statement, however, Revenue expenditure is shown in the Income Statement only.
  • Capital expenditure is capitalized as against Revenue expenditure that is not capitalized.
  • Revenue expenditure is a short-term expense but capital expenditure is a long-term expense.
  • Revenue expenditure is matched with revenue receipts but capital expenditure is not matched with capital receipts.

Categories of Revenue Expenditure

As against capital expenditure, revenue expenditure is not high-value items but they are daily expenditures, which take place in daily business. Unlike capital expenditure, in revenue expenditure, earnings remain maintained and do not increase. The assets are consumed in the accounting year and there are no future benefits available. The assets’ prices remain fixed. Assets are consumed within a year and so you have to purchase them.

Two categories of revenue expenditures are there that are discussed when you ask "who can write my assignment on Capital and Revenue Expenditure as follows:

  • Direct Expenses: The expenses include the manufacturing cost of raw materials that are turned into finished products. The expenses include shipping costs, salaries to workers, water and electricity bills, rent, fuel costs, packaging charges, commissions, etc.
  • Indirect Expenses: These expenses are concerned with selling and goods distribution. The examples are depreciation, salaries, furniture, salaries, etc.

Need for Classification

Capital expenditure and revenue expenditure are completely different things. Revenue expenditure is periodic investments of money, which does not result in loss nor does it benefit a business. Capital expenditure, on the other hand, is a long-term investment that benefits business.

It is important to decide whether the expenditure is revenue or capital in nature. Both capital and revenue have their own benefits and their disadvantages are not understand separately.


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