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Capital expenditure

Accountancy

Inauguration expense on the opening of a new manufacturing unit welcomes n explores more customers .it means sales will increase n there would be a reach for our product .the benefit doesn't exist right . Then how come it s revenue exp??

Reetikaa R

CA Inter

★ 7K+

10-Mar-21 13:11

339

Answers (5)

If sales will increase then there will be more revenue generating in the business so inauguration expense relating to opening of new manufacturing unit is revenue

sai t

CA Foundation

★ 2K+

10-Mar-21 13:20

sai t

If sales will increase then there will be more revenue generating in the business so inauguration expense relating to opening of new manufacturing unit is revenue

Y not capital

Thread Starter

Reetikaa R

CA Inter

★ 7K+

10-Mar-21 13:23

We are welcoming and exploring more customers that means it's indirectly an advertisement to the business

sai t

CA Foundation

★ 2K+

10-Mar-21 13:23

Thread Starter

Reetikaa R

Y not capital

Because it is not a long term revenue or expense

sai t

CA Foundation

★ 2K+

10-Mar-21 13:25

Thread Starter

Reetikaa R

Y not capital

Capital expenditures are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period. Revenue expenditures are the ongoing operating expenses, which are short-term expenses used to run the daily business operations Refer the above paragraph u will easily understand

sai t

CA Foundation

★ 2K+

10-Mar-21 13:30