0
What else can I help you with?
How does an increase in revenue affect working capital?
Revenue affects the capital by decreasing the capital.
What is main difference between capital budget and revenue budget?
While the capital budget and revenue budget are both budgets, the capital budget is incorporated for the long term. A revenue budget is made for the short term.
Does service providers pay the website for the visits they have?
website get revenue only through advertisement
What would happen if you recorded a capital expenditure as a revenue expenditure?
if you recored revenue expediture as capital expediture your profit will be decrease by that amount
What is the marginal revenue of capital?
The marginal revenue of capital refers to the additional revenue generated from employing one more unit of capital in the production process. It is an important concept in economics, as it helps firms determine the optimal level of capital investment. If the marginal revenue of capital exceeds the cost of using that capital, firms are incentivized to invest further; if it falls below that cost, they may reduce their capital investment. Ultimately, it helps in assessing the efficiency and profitability of capital utilization.
How do you calculate the Capital spending ratio?
The Capital Spending Ratio (CSR) is calculated by dividing a company's capital expenditures (CapEx) by its total revenue. The formula is: [ \text{Capital Spending Ratio} = \frac{\text{Capital Expenditures}}{\text{Total Revenue}} ] This ratio indicates the proportion of revenue that is being reinvested in the business through capital investments, reflecting the company's commitment to growth and infrastructure development. A higher ratio suggests a greater focus on capital investment relative to revenue.
Is total revenue the financial capital received from the consumers total expenditures?
Yes, the total revenue is the goods and services sold and receieved through the consumers. Such goods is the financial capital of the toal revenue.
the excess of revenue over the expenses incurred in earning the revenue is called capital?
False
Why it is important to distinguish capital expenditures from revenue expenditures for tax purpose?
Because it is important. Capital expenditure = non-deductible Revenue expenditure = deductible
How does Facebook get its revenue?
Facebook makes its revenue through advertising. Facebook takes your private information and markets it to companies that will manipulate their ads to relate to your likes and interests.From Advertisement
What directly generates revenue for a business?
Output directly generates revenue for business.Output
If a capital expenditure is treated as a revenue expenditure then?
Now, if a capital expenditure is treated as a revenue expenditure, then the expenses would be overstated and also the Fixed assets would be overstated
