Oct 03, 2019· Capital expenditure is expenditure relating to the purchase of noncurrent assets which are not for resale and are used within the business. Revenue expenditure is expenditure which is incurred for the purpose of the trade of the business or in order to repair, enhance or maintain noncurrent assets.
Chapter 5 – Capital Expenditure Analysis Capital Expenditures Business expenditures can be categorized into two main types: revenue expenditures and capital expenditures. Revenue expenditures are defined as those whose benefits will be realized within a year—for example, payment for wages, supplies and insurance. Capital expenditures