Video on
Capital and Revenue Expenditure
Last Updated On: 31-Oct-2021Posted On: 31-Oct-2021
Please Login to Continue Watching Video
- [size= 13.0pt; font-family: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman']Capital expenditures (CAPEX) are funds used by a company to acquire, upgrade, and maintain physical assets such as equipment.[/size]
- [size= 13.0pt; font-family: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman']Capital expenditures are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period. [/size]
- [size= 13.0pt; font-family: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman']Revenue expenditures are the ongoing operating expenses, which are short-term expenses used to run the daily business operations.[/size]
[size= 18pt; font-family: Arial, 'sans-serif'; color: #ffffff][b]Revenue Expenditures[/b][/size] [color=#ffffff] [/color]
[size= 13.0pt; font-family: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman'; color: #111111]Revenue expenditures are short-term expenses used in the current period or typically within one year. Revenue expenditures include the expenses required to meet the ongoing operational costs of running a business, and thus are essentially the same as operating expenses (OPEX).[/size]
[size= 13.0pt; font-family: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman'; color: #111111]Revenue expenditures also include the ordinary repair and maintenance costs that are necessary to keep an asset in working order without substantially improving or extending the useful life of the asset. Revenue expenses related to existing assets include repairs and regular maintenance as well as repainting and renewal expenses. Revenue expenditures can be considered to be recurring expenses in contrast to the one-off nature of most capital expenditures.[/size]
Comments
Need to login to Comment