User:Gmsisuccess1/sandbox

PAYMENTS 1.PERSONAL 2.BUSINESS 3.SOCIETAL

IF BUSINESS PAYMENTS: 1.CAPITAL EXPENDITURE 2.REVENUE EXPENDITURE 3.DEFERRED REVENUE EXPENDITURE

IF CAPITAL EXPENDITURE: IT IS ONE TIME, NON-RECURRING, PERMANENT USE, INCRESES REVENUE EARNING CAPACITY OF THE BUSINESS DRASTICALLY. EXAMPLE - PURCHASE OF COMPUTER, CONSTRUCTION OF BUILDING, MODERNISATION OF PLANT, ACQUISITION OF BUSINESS. CAPITAL EXPENDITURE MAY BE TANGIBLE OR INTANGIBLE. TANGIBLE MEANS CAN BE SEEN/CAN BE TOUCH LIKE LAND & BUILDING. PLANT & MACHINERY ETC, WHEREAS INTANGIBLE ARE GOODWILL, PATENTS, COPYRIGHT, FRANCHAISEE ETC IF REVENUE EXPENDITURE : IT IS RECURRING, REGULARE, EXPECTED, IT IS COST MATCHES WITH CURRENT YEAR'S REVENUE/INCOME, ITS INCURRED DURING SAID CURRENT ACCOUNTING PERIOD, WHICH GIVES BENEFITS OR SERVICES, THAT ARE EXHAUSTED IN THE SAID CURRENT ACCOUNTING PERIOD. SUCH PAYMENTS MAY BE ONCE IN A YEAR. SUCH PAYMENTS HELP TO RUN & MAINTAIN BUSINESS, ITS ASSETS PROPERALLY OR IN SMOOTH WORKING CONDITION. EXAMPLES OF THE REVENUE EXPENDITURE ARE - PURCHASE OF RAW MATERIALS, WAGES, SALARY, RENT, INSURANCE PREMIUM, ADVERTISEMENTS, TNCOME TAX, SALES TAX ETC