0
What expenditure is incurred for carrying the day to day business?
Wiki User
∙ 11y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Define revenue expenditure?
revenue expenditure is recurring in nature. It is incurred to operate day to day expenses. eg salaries and wages, printing and stationery.
What is revenue expenditure?
A revenue expenditure is anything that relates to the day to day running of the business; for example, wages and salaries.
Explain revenue expenditure?
Expenditures will be treated as revenue expenditures if it is incurred for the following purposes:Expenditure for purchasing floating assets i.e., assets meant for resale at a profit or for being converted into selling goods, such as the cost of goods, raw materials and stores.Expenditures incurred by maintaining assets in proper working order e.g., repairs to plant and machinery, building furniture and fittings etc.Expenditures incurred for meeting day to day expenses of carrying on a business e.g., salaries, rent, rates, taxes, stationery, postage etc.All revenue expenditures have to be deducted from the income earned by the firm. That is to say, all revenue items will be taken to the profit and loss account.
What is the difference between general and administrative expense and overhead expense?
General and administration expenses are those expenses incurred to run day to day business activities. Overhead expenses are factory expenses incurred to run the day to day activities of running production process.
What is administrative overheads?
Administrative overheads are the indirect expenses used to run the business and expenses incurred to run the day to day business activities which does not have direct relationship with the manufacturing of product but without it business cannot be run like office administration staff salaries etc
What is capital and what is revenue expenditure?
Revenue expense are costs in the for day to day running of the business for example servicing a machine, spare parts etc. Revenue expenditure is normally charged against profit in the Income..Capital expenditure is an expenditure incurred in acquiring a fixed asset and any other cost incurred in putting the asset in a usable condition like cost of transportation, installation and cost.
Define revenue expenditure?
revenue expenditure is recurring in nature. It is incurred to operate day to day expenses. eg salaries and wages, printing and stationery.
What is revenue expenditure?
A revenue expenditure is anything that relates to the day to day running of the business; for example, wages and salaries.
Explain revenue expenditure?
Expenditures will be treated as revenue expenditures if it is incurred for the following purposes:Expenditure for purchasing floating assets i.e., assets meant for resale at a profit or for being converted into selling goods, such as the cost of goods, raw materials and stores.Expenditures incurred by maintaining assets in proper working order e.g., repairs to plant and machinery, building furniture and fittings etc.Expenditures incurred for meeting day to day expenses of carrying on a business e.g., salaries, rent, rates, taxes, stationery, postage etc.All revenue expenditures have to be deducted from the income earned by the firm. That is to say, all revenue items will be taken to the profit and loss account.
Why capital expenditures are difference from normal day to day expenditure?
why capital expenditure are difference from normal day to day expenditure
What is the difference between general and administrative expense and overhead expense?
General and administration expenses are those expenses incurred to run day to day business activities. Overhead expenses are factory expenses incurred to run the day to day activities of running production process.
What is administrative overheads?
Administrative overheads are the indirect expenses used to run the business and expenses incurred to run the day to day business activities which does not have direct relationship with the manufacturing of product but without it business cannot be run like office administration staff salaries etc
What are the costs incurred in the day to day operations of an organization called?
There are costs incurred in the dad to day operations of all businesses and organizations. These costs are known as operation expenses and operating costs.
Write with reasons whether the following payments are capital or revenue apurchased computer for rs 120000 bpurchased ststionery for rs 12000 cpurchaesd a godrej table for rs 40000 e0 paid salaries to?
a) The purchase of a computer for Rs 120,000 is a capital expenditure because it is a long-term asset that will provide benefits to the business beyond the current accounting period. b) The purchase of stationery for Rs 12,000 is a revenue expenditure as it is a routine operational expense needed for day-to-day activities and does not provide long-term benefits. c) The purchase of a Godrej table for Rs 40,000 is a capital expenditure as it is a tangible asset that will be used over multiple accounting periods and provide long-term value to the business. d) Salaries paid to employees are considered a revenue expenditure as they are a necessary cost to operate the business and are incurred regularly for the services provided by employees.
What is energy expenditure?
Energy expenditure is that amount of calories that someone uses in one day by exercising or doing everyday tasks.
What are the similarities between capital expenditure and revenue expenditure?
Revenue expense are costs in the for day to day running of the business for example servicing a machine, spare parts etc. Revenue expenditure is normally charged against profit in the Income statement in the year it is expensed. Capital expenditure is on an item that will help generate profits over the longer term (12 months or more) so a purchase of a machine or van etc. The item is depreciated over the items useful life and each depreciateable amount is charged to the Income statement in the year the item has help generate profit.
Is a subscription a capital expense?
No, a subscription is considered an operating expense rather than a capital expense. Operating expenses are incurred in the day-to-day operations of a business, while capital expenses are investments in long-term assets like equipment or property.
