Primary Cell and Secondary Cell
A Cell or Battery is an electrical component that converts Chemical Energy into Electrical Energy. Both Cell and Battery are the same combination of electroChemical Cells. The Cell is a simple and small unit. Many Cells make up a Battery and therefore, the Battery is called a cluster of Cells. The Cell is relatively small in size than the Battery.
There are mainly two types of Cell. This is briefly discussed below.
Primary Cell:
In the first Cell electrical Energy is generated using an irreversible Chemical reaction. Rechargeable Cells come out slowly. They are very intertwined. Because of the lack of fluid in the Cell, it is also called a dry Cell. Although easy to use, they cannot be reused. In general, they have very high internal opposition. They are found on the lower coast.
Secondary Cell:
Secondary regenerative Cells convert Chemical Energy into electrical Energy and vice versa. They are charged again by the power supply. They are made up of water Cells and molten salt. There is low internal resistance in this Cell. They are relatively inexpensive to use than the main Cell. They cost more than a basic Cell.
A Battery or Cell is referred to as a compatible combination of electroChemical Cells. The main difference between the Primary Cell and the Secondary Cell is that the Primary Cells are the ones that can be charged whereas the Secondary Cells are the ones that cannot be charged.
Primary Cell
Primary Cells have a large volume and are leaky. Since there is no fluid inside these Cells it is also known as dry Cells. Internal resistance is high and Chemical reactions cannot be reversed. Its initial cost is cheap and basic Cells are easy to use.
The Secondary Cell
Secondary Cells have a small amount of Energy and are made up of molten salt and water Cells. Internal resistance is low and Chemical reactions are reversed. Its initial cost is high and a little more complicated to use compared to the main Cell.
The Difference Between a Basic and a Secondary Cell
Primary Cells are the only ones that can be charged and need to be discarded after the end of the life span, while Secondary Cells need to be recharged once the charging is complete. Both types of batteries are widely used in a variety of applications and these Cells vary in size and material.
Every organisation, firm, company and even the Indian Government incurs several forms of expenditure for various reasons. Some of these reasons include generation of higher revenue and others may involve investment strategies to bolster maintenance or finance business expansions which would help the entire organisation in the long run.
So, when companies prepare their upcoming calendar budget, they categorise it into two parts, i.e. expenditure and receipts, which can be further subdivided into its revenue and capital variants.
The primary concern for companies and organisational bodies in incurring expenditure is to improve the overall efficiency of the business, which in turn transcends to increased profit returns. In the branch of commerce, understanding the difference between capital expenditure and revenue expenditure helps students to realise the fundamentals of the budget allocation of a company, firm, or an entire nation.
What is Capital Expenditure?
Capital Expenditure also referred to as CapEx, is regarded as the funds used by a company, firm, enterprise or an organisation to acquire, upgrade and maintain its fixed assets. Such assets include its PP&E (i.e. its Plants, Property and Equipment) which are mainly, workstations, machinery, infrastructure, etc. Such assets are usually long-term and offer productivity for more than one accounting period.
When any enterprise or organisation makes investments on assets for generation of profit in the days to come, such expenditures are mainly capital in nature. Through capital expenditure, companies and firms can buy new equipment or even use it for maintenance of assets.
Example:
Examples of capital expenditures include the following –
Office buildings (expenses concerning acquisition and sustenance of a building/s)
Workplace equipment like computers, printers, coffee machines, furniture, other appliances, etc.
Patents, copyrights, trademarks, etc.
Since such assets offer income-generating value for an organisation for a certain period, organisations are not allowed to subtract the total cost of the asset in the year when such capital expenditure is incurred. Instead, the organisation must recover the cost of such assets by annual depreciation over the years the asset is being of use to the organisation.
What is Revenue Expenditure?
Revenue Expenditure also referred to as Income Statement Expenditure, are considered as those expenses which are incurred on a day to day basis. In simple terms, it is the total amount of expenses of a company, firm or an organisation incurred for maintaining its earning capacity.
In the case of Revenue Expenditures, the costs are related to those assets which are not capital in nature since they do not offer financial benefits beyond the current accountable year. It means that companies or firms incurring such expenditure recognises these costs and post them in full on the Income Statement in the year of their occurrence.
Moreover, Revenue Expenditures can be categorised into two types which are –
1. Expenditures for Revenue Generation
Such expenditures include those day-to-day expenses that are required to run a business efficiently.
2. Expenditures for Maintenance of Revenue-Generating Assets
Such expenditures include repair and maintenance of assets which are estimated to generate revenue for the current accounting year and beyond.
Examples:
Examples of revenue expenditures include the following –
Employee salaries
Cost of supplies
Marketing and advertising costs of the organisation
Commissions paid to executives and franchises
Telecommunication expenses of the company
A broader example which will help to distinguish between revenue expenditures and capital expenditures can be done with the example of a purchase of a storage facility of a company. The funds required for the purchase of the storage facility is considered a capital expenditure. In contrast, the painting and refurbishing costs are denoted as revenue expenditure since it does not promote the asset in generating more income.
To develop a clear understanding of the essential differences between capital and revenue expenditure, consult the details tabulated below –
Difference Between Revenue Expenditure and Capital Expenditure
At Vedantu, we hope that the above discussion on the differences between revenue and capital expenditure has helped to instil a clear idea on the topic. We offer study material on other chapters of Class 11-12 Commerce. Make sure to visit our official website to join our fun and interactive learning program!
Differences between Primary, Secondary and Fuel Cells
Main Cell: A core Cell or Battery is one that can be easily charged after a single use, and is discarded after discharge. These Cells are not charged because the electrode reaction occurs only once and after prolonged use the batteries die and cannot be reused.
Secondary Cell: The Secondary Cell or Battery is the one that can be electrically recharged after it is fully discharged. It is recharged beyond the current through the circuit as opposed to the current location at the time of discharge.
Fuel Cells: Fuel Cells are another form of Chemical Energy that can be converted into electrical Energy. The only disadvantage of the Primary Cell is that it can only have a limited amount of oxidising and reducing agent which is why it cannot be charged for a long time. But in Secondary Cell Energy can be stored as fuel for longer period of time.
Chemical Reaction
Cells: In Primary Cells, irreversible reactions occur.
Secondary Cells: In the Secondary Cell, reverse reactions occur.
Usage
Primary Cells: Basic Cells can be used only once.
Secondary Cells: Secondary Cells can be used more than once as they have fuel and can discharge more Energy.
Significance
Primary Cells: Cells are capable of producing Energy quickly; therefore, they are used in portable machines.
Secondary Cells: Secondary Cells must be charged before use. For example in cars.
Output Rate
Basic Cells: Stem Cells have low levels of release and can be used for long-term Energy storage.
Secondary Cells: Secondary Cells have a higher release rate compared to Primary Cells.
Conclusion
Batteries are an important part of technology. All batteries are made of electroChemical Cells. Primary and Secondary Cells are two types of batteries that are useful for everyday life. The only difference is that Primary Cells are used for a shorter duration and more Energy is stored in Secondary Cells.
