business accounting

In accounting, a capital expenditure is added to an asset account ("capitalized"), thus increasing the asset's basis (the cost or value of an asset as adjusted for tax purposes).
an revenue expenditure or operating expense is a day-to-day expense such as sales and administration, or research & development, as opposed to production, costs, and pricing. In short, this is the money the business spends in order to turn inventory into throughput. Operating expenses also include depreciation of plants and machinery which are used in the production process.On an income statement, "operating expenses" is the sum of a business's operating expenses for a period of time, such as a month or year.

"Revenue Expenditure" should be stated in the financial statements as expenses in calculating the profits or loss of the company for the year.