Write two differences between revenue expenditure and capital expenditure.

Question

&nbsp;Difference between Capital Expenditure and Revenue Expenditure:Capital ExpenditureRevenue ExpenditureExpenditure i...

Accepted Answer

&nbsp;Difference between Capital Expenditure and Revenue Expenditure:Capital ExpenditureRevenue ExpenditureExpenditure i...

Capital Expenditure	Revenue Expenditure
Expenditure is incurred to acquire assets, and enhance the capacity of an existing asset resulting in increasing its lifespan	Expense incurred to maintain the day to day business activities
Enhances the existing asset value	Does not enhance the existing asset value