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What is the liability created by receiving the revenue in advance?
Depends on the nature of the revenue received. Usually unearned revenue, customer advances, contract revenue in advance.
What is the nature of the unearned revenue?
unearned revenue falls under the head of nominal account and it is definaltel a liability on the organization.
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 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.
What is the difference between total revenue and operating revenue?
Operating revenue is revenue generated from prime activity of business, or the typical activity that is reoccurring in nature. on the other hand Non Operating revenue is the revenue from source that is not related to the typical activity of business. It may include gain from investment (if organization is not itself a financial institution) , gain from property or by selling some asset or gain from currency exchange. Total Revenue is the sum of both Operating revenue and non operating revenue. For example: Abc Co manufacture furniture, the revenue from selling furniture is $50000 and it also sell its one of its property at $45000 that ABS Co bought several years ago for $40000. .. operating revenue---------= $50000 non operating revenue(45000-40000)= $ 5000 total revenue (50000+5000) $ 55000
What is the liability created by receiving the revenue in advance?
Depends on the nature of the revenue received. Usually unearned revenue, customer advances, contract revenue in advance.
Is a service revenue a credit or debit?
Service Revenue is credit in nature because it is an income.
What is the nature of the unearned revenue?
unearned revenue falls under the head of nominal account and it is definaltel a liability on the organization.
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 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.
Why is unearned revenue typical for Microsoft?
Unearned revenue is typical for Microsoft due to the nature of their products, such asWindows and Office. At the time of sale, customers pay for the current version of the software as well as future upgrades that will become available. Microsoft recognizes revenue for the sale of the current version, and records unearned revenue for the value of future upgrades.
What is the nature and purpose of marketing budgets?
The nature of marketing budgets is that they entail all the marketing aspects like advertisements and promotions. The purpose of these budgets is help increase the revenue of the company through marketing.
What is the difference between total revenue and operating revenue?
Operating revenue is revenue generated from prime activity of business, or the typical activity that is reoccurring in nature. on the other hand Non Operating revenue is the revenue from source that is not related to the typical activity of business. It may include gain from investment (if organization is not itself a financial institution) , gain from property or by selling some asset or gain from currency exchange. Total Revenue is the sum of both Operating revenue and non operating revenue. For example: Abc Co manufacture furniture, the revenue from selling furniture is $50000 and it also sell its one of its property at $45000 that ABS Co bought several years ago for $40000. .. operating revenue---------= $50000 non operating revenue(45000-40000)= $ 5000 total revenue (50000+5000) $ 55000
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)
How is the entry of rent paid in cash for ware house?
Rent can be in expenditure nature or revenue nature. rent paid in cash for warehouse is in expenditure nature for the lender of warehouse, but is revenue to the owner of the warehouse.ACCOUNTING ENTRIES SHOULD BE AS FOLLOWSRENT PAID:DR-WAREHOUSE RENT ACCOUNTCR- CASH ACCOUNTIN CASE OF RENT RECEIVABLEDR:CASH ACCOUNTCR:WAREHOUSE RENT ACCOUNTACCORDING TO THIS TRANSACTION, THE LENDER OF THE WAREHOUSE WILL LOSE AND THE OWNER OF WAREHOUSE WILL GAIN.BY. WILLIAM JOSEPHwillymsukuma@yahoo.com
Definition of incremental revenue?
Incremental Revenue is the increase of revenue between a new revenue and a previous revenue, thus the formula: Incremental Revenue = New Revenue - Previous Revenue
What is normal balance of a revenue account?
Not entirely sure what your question is specifically asking, so I'll just answer it as I first read it. A revenue account has a credit nature, so a "normal" or "positive" or healthy balance is for it to be in the credit (cr) figures. Hopefully this helps :)
