Do you agree or disagree with the folowing post? Please explain. Thank you in advance!

Capital expenditure, is the expenditure which in incurred to acquire a fixed asset which increases the productivity or earning capacity of the company.Capital expenditure appears generally as assets in the balance sheet and is non recurring in nature.

Examples:

Cost of machinery purchased.

Installation charges of machinery purchased.

Customs duty on imported machinery.

Cost of improvement in electric wiring system.

Repair of a second hand machine before put to use.

Legal expenses to purchase a building.

Revenue expenditure, is the expenditure which is incurred to carry out the normal day to day activities of the company .They are incurred to maintain existing productivity or earning capacity of the company.Revenue expenditure appears generally as expenses on the debit side of trading and profit as well in loss account. Revenue expenditure is recurring in nature.

Examples:

Depreciation on assets.

Repairs of machinery after is put to use.

Rent paid.

Interest paid.

Salary paid.

Annual maintenance charges of the machine

In another words,revenue expenditure are those types of expenses which are recurring in nature and are required in the daily functioning of the business for e.g. staff salary, rent etc whereas, capital expenditure are non recurring and are not made every day they are generally made to generate revenue for the organization in the future for e.g. Plant & Machinery.