False
matching principle
capital reserve is a type of account on a company's balance sheet that is reserved for longterm capital investment projects or any other large expenses that will be incurred in the future. capital reserve is a type of account on a company's balance sheet that is reserved for longterm capital investment projects or any other large expenses that will be incurred in the future.
Revenue expenses are those expenses which are incurred for every fiscal year to earn revenue for specific fiscal year and are recurring nature like salaries etc.
A business (company or individual) earns money - called earning or revenue. To earn this, the entity incurs expenses - such as material, salaries, telecom costs. When you subtract the expenses from the revenue, the result is called 'profit', if it is positive, and 'loss', if negative. So the difference is - expenses are the costs incurred by a business, and loss is the difference between earnings and expenses, (if expenses are more than revenues).
It is a listing of all revenue/expenses incurred by the business during a set period. It shows areas of growth and areas that are lagging within the business.
matching principle
Capital expenditure includes costs incurred on the acquisition of a fixed asset and any subsequent expenditure that increases the earning capacity of an existing fixed asset. Where as, Revenue expenditure incurred on fixed assets include costs that are aimed at 'maintaining' rather than enhancing the earning capacity of the assets. These are costs that are incurred on a regular basis and the benefit from these costs is obtained over a relatively short period of time.
capital reserve is a type of account on a company's balance sheet that is reserved for longterm capital investment projects or any other large expenses that will be incurred in the future. capital reserve is a type of account on a company's balance sheet that is reserved for longterm capital investment projects or any other large expenses that will be incurred in the future.
Revenue expenses are those expenses which are incurred for every fiscal year to earn revenue for specific fiscal year and are recurring nature like salaries etc.
A business (company or individual) earns money - called earning or revenue. To earn this, the entity incurs expenses - such as material, salaries, telecom costs. When you subtract the expenses from the revenue, the result is called 'profit', if it is positive, and 'loss', if negative. So the difference is - expenses are the costs incurred by a business, and loss is the difference between earnings and expenses, (if expenses are more than revenues).
By deducting expenses from revenue, the net earning of the company is ascertained.
It is a listing of all revenue/expenses incurred by the business during a set period. It shows areas of growth and areas that are lagging within the business.
This is the Accrual basis accounting method, which uses the matching principle (expenses following revenue) to record expenses when they are incurred, and revenue when it is earned (not on the date when cash is received or paid out).
All the expenses which a business incurred from start of business to actual start of operations of revenue generating activity of business is called preliminary expenses.
A revenue expenses report is a listing of all expenses an organization incurred during a specified period, usually a month, quarter, or a year. One example of n expense is rent, utilities, etc.
capital expenditure.
revenue expenditure is recurring in nature. It is incurred to operate day to day expenses. eg salaries and wages, printing and stationery.