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Capital expenditure

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

Reetikaa R

CA Foundation

4K+

10-Mar-21 13:11

19

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

sai t

CA Foundation

295

10-Mar-21 13:20

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


sai t

sai t

CA Foundation

295

10-Mar-21 13:23

Y not capital

Because it is not a long term revenue or expense


sai t

sai t

CA Foundation

295

10-Mar-21 13:25

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

sai t

CA Foundation

295

10-Mar-21 13:30

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