1 What does long-term or short-term capital expenditure consist of?

Capital is an investment in an operational business. Capital expenditure is used to develop the activity, increase profits and reduce production costs, it is a long-term investment made by a company to generate financial gain for years to become, for example, a company that can buy machines or installs new machine to improve their production capacity and possibly increase its profits.

 Revenue expenditure the opposite of capital expenditure revenue expenditure implies that the expenditure incurred in daily operational activities is, therefore, the expenditure incurred during operations: salary, electricity costs, insurance, repair expenses are imported into the country. statement of income when concluding capital expenditure is long-term expenditure revenue expenditure is short-term