In terms of accounting, what is the difference between equity expenditure and capital expenditure???

Capital expenditure: It is the expenditure required for the purchase or production of durable goods with a service life of more than one year, and refers to the expenditure incurred by the enterprise unit and its benefit in two or more fiscal years, including the expenditure constituting fixed assets, intangible assets and deferred assets. This expense is generally accounted for as an asset, and then depreciation is paid on a monthly basis.

Revenue-based expenses: also known as period expenses. It refers to the expenses incurred by the enterprise in the course of operation, and its benefits are only related to the current fiscal year, so they are compensated by the income of the current year. When these expenses are incurred, they should be recorded in the relevant cost account for the current year.

Difference: Income expenditure is different from capital expenditure, the former is fully compensated by the operating income of the current year, and the latter is recorded as an asset first, and the cost of each year is amortized annually through depreciation or amortization. The distinction between revenue expenditure and capital expenditure is to correctly calculate the profit and loss from year to year and to correctly reflect the value of the asset.

If the revenue expenditure is regarded as capital expenditure, the result is that the current expenses are undercounted, the asset value is overcounted, and the profits are inflated; On the contrary, the current expenses are overcounted, the asset value is undercounted, and the profits are inflated.

Equity expenditure should be the expenditure for the distribution of investors' profits, while asset expenditure is the expenditure for the purchase of fixed assets, construction of houses, etc.

1. Equity expenses are all compensated by the operating income of the current year; Capital expenditures are recorded as assets and amortized annually through depreciation or amortization.

2. Equity expenses should be included in the cost of the current fiscal year and do not need to be allocated to subsequent years; Capital expenditures should be amortized over a number of income periods.

Capital expenditures are those expenditures that can be incurred over multiple accounting periods through the benefits of property or labor base gains obtained through it. Accordingly, such expenditures should be capitalized and charged to the asset class account and then transferred to the appropriate expense account in instalments based on the benefits obtained.

Equity remembrance expenses refer to the total outflow of dividends, bonuses, etc., paid to investors, that is, the distribution of profits to owners. Cost expenditure refers to the specific expenditure items that must be prudent in order to maintain normal operation, such as the cost of applying for licenses by relevant departments. Cost expenditure is different from capital expenditure, the former is fully compensated by the operating income of the current year, and the latter is borne by the operating income of each beneficiary year.

This is because the benefit period of revenue expenditure and capital expenditure is different.

1. Revenue-generating expenditure refers to the expenditure with a benefit period of no more than one year or a business cycle, that is, the expenditure is incurred only for the purpose of obtaining the current income; Capital expenditure is the expenditure that is solely for the purpose of obtaining current income; Capital expenditure refers to expenditure with a benefit period of more than one year or one business cycle, that is, the expenditure is incurred not only to obtain income in the current period, but also to obtain income in subsequent periods.

2. Division: The principle of dividing capital expenditure and benefit expenditure requires that capital expenditure and revenue expenditure should be distinguished in the accounting, and then the revenue expenditure should be included in the expense account and included in the profit and loss statement as the current profit or loss; Capital expenditures are recorded in the asset account and included as assets on the balance sheet. The former is called expense-to-expense; The latter is called expenditure capitalization.

Capitalized expenditures are gradually converted into expenses through transfer, depreciation and amortization according to the benefit principle and consumption ratio as the assets are consumed in each period.

3. From this point of view, the expenses related to the acquisition of the current income, that is, the costs and expenses of the current period, are, first, the revenue expenses directly included in the expense account; The second is the capital expenditure transferred from the asset account to the expense account in the current period. It can be seen that the purpose of capital expenditure and revenue expenditure is to reasonably determine the nature of cash expenditure and correctly calculate the current profit in accordance with the requirements of the accrual accounting system and the matching principle.

4. Understand revenue expenditure and capital expenditure The general purpose of various expenditures incurred by enterprises is to bring certain benefits to the enterprise. However, the length of time for various expenditures to bring benefits to the enterprise is different, and the expenditures that can only bring benefits to the enterprise in a certain fiscal year are called revenue expenditures; Expenditures that bring benefits to a business for a number of fiscal years are called capital expenditures.

5. The significance of dividing revenue expenditure and capital expenditure in accounting The purpose of dividing revenue expenditure and capital expenditure is to classify different types of expenditure into different accounts in accounting, and to ensure the accuracy of calculating profits.

6. Generally speaking, capital expenditure should be included in the cost of assets when incurred, and the value consumed by it should be transferred to current expenses as it is used; Revenue-generating expenses are treated as expenses in the period in which they are incurred. For example, the purchase of a piece of equipment is worth 50,000 yuan, and it is expected to be used for 10 years. In other words, when this 50,000 yuan expenditure is incurred, we know that its benefits will last for 10 years.

Therefore, when spending 50,000 yuan to purchase this equipment, it should be regarded as capital expenditure in accounting, which is specifically reflected in the "fixed assets" account as its cost; With the use of equipment, its value is gradually transferred to the product, and the cost is gradually converted into expense.

one, Capex (capital expenditure): Capital expenditure, refers to the inflow of benefits from property or services obtained from expenditure that can be sustained in multiple accounting periods in the future. Accordingly, such expenditures should be capitalized and charged to the asset class account first, and then transferred to the appropriate expense account in installments.

In the business activities of an enterprise, assets that have been used for a long time and whose economic life will last for many accounting periods, such as fixed assets, intangible assets, deferred assets, etc., should be regarded as capital expenditures. That is, it is capitalized first to form fixed assets, intangible assets, deferred assets, etc.

The cost is then converted into an expense in installments. Such as: depreciation of fixed assets, amortization of intangible assets and deferred assets, etc.

Capital investment expenditure refers to the capital expenditure used for infrastructure construction, expansion of reproduction, etc., which needs to be amortized in installments over multiple fiscal years. Since the decision-making power of strategic investment is not in the local network, CAPEX is limited to rolling investment and does not include strategic investment in BPR's index assessment. The main indicators are the CAPEX revenue ratio and the investment and return on investment (ROI), the former is the CAPEX revenue ratio, which reflects the proportion of capital expenditure to revenue; The latter reflects the return on investment.

The calculation formula is: capex = strategic investment + rolling investment.

II. II. IIOPEX is (operating expense), that is, revenue expense, which is related to the current income and is included in the current profit or loss, including daily expenses and capital expenditure amortized in the current period.

The calculation formula is: OPEX = maintenance expenses + marketing expenses + labor costs (+ depreciation).

Revenue-generating expenses refer to expenditures with a benefit period of no more than one year or one business cycle, i.e., the expenses are incurred solely for the purpose of obtaining current income; Capital expenditure is the expenditure that is solely for the purpose of obtaining current income; Capital expenditure refers to expenditure with a benefit period of more than one year or one business cycle, that is, the expenditure is incurred not only to obtain income in the current period, but also to obtain income in subsequent periods.

For example, the purchase of raw materials is a revenue expenditure, and the construction of a house is a capital expenditure.

What the comrade above said is too textbook.

The so-called equity expenditure, in fact, you can first understand the equity well, we learn accounting, first of all, we have to talk about assets = liabilities + owners' equity, the equity here is probably the owner's equity, for the share ****, it refers to the company's assets after deducting the remaining equity of the shareholders.

As for equity expenditure, it is the part of the expenditure that is distributed to the owners of the company, that is, the shareholders, and as for the capital expenditure, it means that this part of the expenditure can be included in the cost in accounting, that is, this part of the expenditure can form the company's assets, so it will not be treated as a period expense. Just like the expenditure on building fixed assets, it can be included in the cost of fixed assets. Because this part of the expenditure is an asset, it brings the subsequent production capacity, and you know exactly which part of the cost it should be included in.

That's it, I hope it helps.

A simple identification method, whether the investment can directly obtain profit benefits, yes, is the benefit of investment; No, it is capital investment. For example, investment in fixed assets.