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the excess of revenue over the expenses incurred in earning the revenue is called capital?
False
What is excess revenue?
EXCESS OF REVENUE OVER EXPENSESEXCESS OF REVENUE OVER EXPENSES in the not-for-profit sector. There is a common misconception that not-for-profit organizations are not allowed to have a financial cushion as they are 'not-for-profit'. In this context it is useful to remember that not-for-profit organizations are also 'not-for-loss' organizations. An organization cannot sustain losses over the long term without ceasing to operate or going bankrupt. Excess of revenue over expenses is the planned financial position that there will always be a sufficient amount of funds on hand to continue to run the not-for-profit entity for some period without additional funding; usually 3-4 months.
Expenses incurred while earning revenue should be reported in the same period that the income is reported?
matching principle
The excess of expenses over revenues is referred to as?
Net loss
How do you monitor and control actual expenses and revenue against projected expenses and revenue?
how to monitor and control expenses against budget/
the excess of revenue over the expenses incurred in earning the revenue is called capital?
False
What is excess revenue?
EXCESS OF REVENUE OVER EXPENSESEXCESS OF REVENUE OVER EXPENSES in the not-for-profit sector. There is a common misconception that not-for-profit organizations are not allowed to have a financial cushion as they are 'not-for-profit'. In this context it is useful to remember that not-for-profit organizations are also 'not-for-loss' organizations. An organization cannot sustain losses over the long term without ceasing to operate or going bankrupt. Excess of revenue over expenses is the planned financial position that there will always be a sufficient amount of funds on hand to continue to run the not-for-profit entity for some period without additional funding; usually 3-4 months.
Expenses incurred while earning revenue should be reported in the same period that the income is reported?
matching principle
What is the term used to describe the difference between revenue and expenses?
Revenue is the amount of money a business/person makes as a whole. Expenses are things that a business/person has to pay for with their revenue such as utilities that a business uses. What's left over from the revenue after the expenses are paid for is profit.
What is life assurance fund?
It is the excess revenue income over revenue expenditure for an insurance company.
The excess of expenses over revenues is referred to as?
Net loss
How do you monitor and control actual expenses and revenue against projected expenses and revenue?
how to monitor and control expenses against budget/
What is the importance of revenue to a business?
revenue is what pays the expenses of running the business and hopefully you can even make enough revenue above expenses to make a profit
What is the meaning of revenue expenses in financial accounting?
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.
How is a gross margin calculated?
the excess of the net sales revenue over the cost of goods sold.
Does net loss occurs when expenses are less than revenue?
Net Income : When Revenue is greater than Expenses. Net loss : When Expenses are greater than Revenue. References : Basic Accounting (111) Book .
Define the term budget?
Its classed as an estimation of the revenue and expenses over a specified future period of time
