Difference between capital expenditure and revenue expenditure in tabular form
Sure, I can help with that. Here's a tabular comparison of capital expenditure and revenue expenditure:
| Aspect | Capital Expenditure | Revenue Expenditure |
|---|---|---|
| Nature | Long-term investment in assets that provide future benefits | Routine operational expenses incurred to maintain the business |
| Timing of Benefits | Benefits are derived over multiple accounting periods | Benefits are generally realized in the current accounting period |
| Impact on Financial Statements | Typically recorded as assets on the balance sheet and depreciated or amortized over time | Recorded as expenses on the income statement for the current accounting period |
| Examples | Purchase of land, buildings, equipment, and vehicles | Repair and maintenance expenses, salaries, rent, and utilities |
| Tax Treatment | May be eligible for capital allowances or depreciation | Usually fully deductible in the year incurred for tax purposes |
| Decision Making | Requires careful consideration and evaluation of long-term impact | Often involves day-to-day operational requirements and budget constraints |
I hope this helps to clarify the differences between capital expenditure and revenue expenditure. Let me know if you need further information!