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    samiyasiddiqui's Avatar
    samiyasiddiqui Posts: 2, Reputation: 1
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    #1

    Dec 2, 2010, 03:25 AM
    Fire insurance are capital expenditure or revenue expenditure and why?
    Fire insurance is capital expenditure or revenue expenditure and why?
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #2

    Dec 2, 2010, 08:57 AM

    It is a revenue expenditure. A capital expenditure is when a business spends money to buy fixed assets or add value to them that extends their useful life. Insurance does neither of these things.
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