What is the difference between capital expenses and revenue expenses?

Question

Accepted Answer

Capital expenses are for long-term assets while revenue expenses are for day-to-day operations.

Capital expenses are investments in long-term assets like buildings, equipment, and vehicles.
Revenue expenses are costs incurred in day-to-day operations like salaries, rent, and utilities.
Capital expenses are usually one-time expenses while revenue expenses are recurring.
Capital expenses are recorded as assets on the balance sheet while revenue expenses are recorded as expenses on the income statement.
Capital expenses are depreciated over time while revenue expenses are fully deducted in the year they are incurred.

Accepted Answer

Capital expenditure is the money spent by a firm to acquire assets or to improve the quality of existing ones. Revenue expenditure is the money spent by business entities to maintain their everyday operations. Capital expenses are incurred for the long-term

What is the difference between capital expenses and revenue expenses?

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