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What else can I help you with?
What kind of expense is rent expense?
Rent expense is a Revenue expense and not a capital expense. It is a revenue expense because it recurs from year to year and is not an expense in purchasing a fixed asset. It is classified as a revenue expense also because it features in the income statement of each year and following the principle of accruals, the accountant must, make the necessary end of period adjustments to make sure that the the amount of rent expense that should have paid is charged against revenue and not just the actual cash paid.
Is the expense incurred in acquiring patent rights a revenue expenditure?
capital expenditure.
What are head of accounts?
There are Five heads of Accounts: Asset, Expense, Liability, Capital, Revenue.
Is software considered a capital expense?
Yes, software can be considered a capital expense if it is purchased for long-term use and provides lasting benefits to a business, such as increasing productivity or generating revenue.
Is the purchase of a route a capital expense?
If route is purchased for one fiscal year then it is a revenue expense, but if route is purchased for morethan one year then first year purchase portion is revenue expense and remaining portion is long-term asset.
The cost of a new windshield wiper on a delivery truck would be classified as a capital expenditure or revenue expenditure or an infrequent expense?
revenue expenditure
The accounts listed on the trial balance with a credit balance include?
owners capital. revenue and expense accounts
Is motor expenses a fixed cost?
The nature of the expense decides whether it is capital or revenue expense. If the expense is incurred for maintaing it in good condition it is revenue nature and it has to be debited in profit & loss account (eg. petrol, service charges, ect.). If the expense is incurred for making it run then it is capital nature and is to be added to the value of the motor car. (eg. change of engine or any important parts which is important for the running of the motor car)
The entry closing the Expense and Revenue Summary is a?
The entry closing the Expense and Revenue Summary is a?
Is overhaul expenses of second hand machinery purchased are revenue expenses?
Overhaul expense on a second hand machinery is a capital expense, and should be added to the original cast of the asset.
Is sales revenue an expense or asset?
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
Distinguish between capital and revenue expenditure?
Capital expenditure refers to an expense resulting in acquisition of an asset or increase in the earning capacity of a business. Revenue expenditure is defined as an expense that is essential for the maintenance of earning capacity of a business.
