Saved Bookmarks
| 1. |
Distinguish between expense and expenditure |
|
Answer» Expenditure is of two types :- Capital expenditure and revenue expenditure revenue expenditure is also called expense Expenditure\xa0will generate future economic benefits for the company, but the\xa0expenses\xa0will generate the benefit for the current period only. The major\xa0difference between Expense\xa0vs\xa0Expenditure\xa0is that the\xa0expenditure\xa0is a single time investment of money. ... Conversely,\xa0Expenses\xa0are of the shorter term.\xa0In terms of its accounting treatment, an\xa0expense\xa0is recorded immediately and impacts directly the income statement of the company, reducing its net profit. In contrast, a\xa0capital expenditure\xa0is capitalized, recorded as an asset and depreciated over time. |
|