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What is the main difference between revenue expenditure and capital expenditure?

ARevenue expenditure is for immediate consumption, while capital expenditure is for future benefits.

BRevenue expenditure is taxed, while capital expenditure is not taxed.

CRevenue expenditure relates to operational costs, while capital expenditure relates to investments in property.

DRevenue expenditure is for recurring expenses, while capital expenditure is for creating long-term assets.

Answer:

D. Revenue expenditure is for recurring expenses, while capital expenditure is for creating long-term assets.

Read Explanation:

  • Revenue expenditure covers day-to-day costs that do not create assets, while capital expenditure is a one-time investment in assets.


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