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What is the the necessary expense rule three part test is intended to do?
justify the purpose of an expenditure
What is GNP and His purpose and limitations?
expenditure in GNP accounting
What is income expenditure?
A statement that records the income and expenditure of an organization such as a charity,whose main purpose is not the generation of profit.
What are t6he examples of revenue expenditure?
Any asset purchased for short term with the intention to resale it OR any repair, replacement, which is done to maintain a standard of activity level is termed as revenue expenditure. A car purchased for the purpose of resale is revenue expenditure, on the contrary if the car is purchased and is used for the purpose of the company then it is considered as a capital expenditure.
The three-part test to determine whether an expenditure is proper under the Purpose Statute consists of the following parts?
The three parts of the Purpose Statute test are: 1) whether the expenditure serves a public purpose, 2) whether the expense is necessary for the public purpose, and 3) whether the expenditure is a reasonable means to achieve the public purpose.
Why it is important to distinguish capital expenditures from revenue expenditures for tax purpose?
Because it is important. Capital expenditure = non-deductible Revenue expenditure = deductible
The necessary expense rules three-part test is intends to do what?
justify the purpose of an expenditure
What is the necessary expense rule three-part test intended to do?
justify the purpose of an expenditure
What is the necessary expense rule three-part test is intended to?
justify the purpose of an expenditure
Which step of the necessary expense test ensures that the expenditure be necessary and incident to the proper execution of the general purpose of the appropriation?
The expenditure must bear a logical relationship to the appropriation sought to be charged
Is credit income or expenditure?
Credit is neither an income or an expenditure. It becomes an expenditure when you use it. expenditure
What is the definition of Recurring Expenditure and Non Recurring Expenditure?
expenditure
