P2:
Explain the difference between capital and revenue items of
expenditure and income.
For this assignment I am going to explain the difference between
capital and revenue items of expenditure and income. I don`t have
chosen any company for this assignment because it is not asked.
Capital Income
Capital income is money which has been set aside by owners or
investors. This amount is used to start up the business and to buy
fixed assets (things that will stay inside the business for a medium-to-
long period Premises, Vehicles or Equipment). These items are
bought to be sold. But you can also sell these items when they not
longer a use for the company, although during that time some items
may decrease in value.
Capital Expenditure
Capital expenditure also known as capital spending are long term
investments to help a business achieve growth and thrive. It is usually
an amount spent to obtain or upgrade productive assets such as
premises, machinery and equipment. Capital expenditure is usually
incurred to increase the efficiency of a business in a certain period.
Revenue Income
Revenue income is the money which a business receives form trading
activities. Like any sales, whether from cash or credit transactions are
called revenue income. It can also be from dealings like rent or
commission received.
Revenue Expenditure
Revenue expenditure is about the costs a business makes on a day-
to-day basis. When companies make revenue expenditure, the
expenses provide directly benefits rather than the expenses on a long
term. Revenue expenditure includes things like; maintenance, wages,
Explain the difference between capital and revenue items of
expenditure and income.
For this assignment I am going to explain the difference between
capital and revenue items of expenditure and income. I don`t have
chosen any company for this assignment because it is not asked.
Capital Income
Capital income is money which has been set aside by owners or
investors. This amount is used to start up the business and to buy
fixed assets (things that will stay inside the business for a medium-to-
long period Premises, Vehicles or Equipment). These items are
bought to be sold. But you can also sell these items when they not
longer a use for the company, although during that time some items
may decrease in value.
Capital Expenditure
Capital expenditure also known as capital spending are long term
investments to help a business achieve growth and thrive. It is usually
an amount spent to obtain or upgrade productive assets such as
premises, machinery and equipment. Capital expenditure is usually
incurred to increase the efficiency of a business in a certain period.
Revenue Income
Revenue income is the money which a business receives form trading
activities. Like any sales, whether from cash or credit transactions are
called revenue income. It can also be from dealings like rent or
commission received.
Revenue Expenditure
Revenue expenditure is about the costs a business makes on a day-
to-day basis. When companies make revenue expenditure, the
expenses provide directly benefits rather than the expenses on a long
term. Revenue expenditure includes things like; maintenance, wages,
