Write the difference between capital expenditure and revenue expenditure?

Expenditure incurred in enhancing the current one or buying the new one.

It’s a long term expenditure.

Lump sum amount is required.

Amount is capitalized.

Reflects in balance sheet.

It’s a non- recurring in nature.

Improves earning capacity.

Expenditure is not matched with capital receipts.

Benefit period is more than a year.

Have physical presence except for intangibles.

Expenditure incurred to run day to day operations.

It’s a short term expenditure.

Amount is small when compared to capital expenditure.

Reflects in profit and loss account (income statement).

It’s a recurring in nature.

It will maintain the earning capacity.

Expenditure is matched with revenue receipts.

Benefit period is up to current year.

Don’t have a physical presence.