Capital expenditure: refers to the expenditure required for purchasing or producing durable goods with a service life of more than one year, and refers to the expenditure incurred by the enterprise, its benefits and the expenditure incurred in two or more accounting years, including the expenditure that constitutes fixed assets, intangible assets and deferred assets.

Income and expenditure: also known as period expenses. Refers to the expenses incurred by an enterprise in the course of its operation, and its income is only related to this accounting year, so it is compensated by this year's income. When these expenses occur, they should be recorded in the relevant cost and expense accounts of the current year.

Difference: Income expenditure is different from capital expenditure. The former is fully compensated with the current year's operating income, while the latter is recorded as an asset first and amortized into the annual cost through depreciation or amortization. The purpose of distinguishing income expenditure from capital expenditure is to correctly calculate the profit and loss of each year and correctly reflect the value of assets. If revenue expenditure is regarded as capital expenditure, the result is that the current expenses are underestimated, the asset value is overestimated and the profit is inflated; On the contrary, the current expenses are overvalued, the value of assets is underestimated, and the profits are artificially reduced.