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View Full Version : Fire insurance are capital expenditure or revenue expenditure and why?


samiyasiddiqui
Dec 2, 2010, 03:25 AM
Fire insurance is capital expenditure or revenue expenditure and why?

Just Looking
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.