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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
Examples of capital expenditure and revenue expenditure?
Capital expenditures are included in fixed asset costs. Examples of capital expenditures are purchase costs, legal charges delivery charges, and installation charges. Revenue expenditures include maintenance charges, renewal expenses, repair costs, and repainting costs.
What is the journal entries company sales product?
debit accounts receivablecredit sales revenue
Is total revenue the financial capital received from the consumers total expenditures?
Yes, the total revenue is the goods and services sold and receieved through the consumers. Such goods is the financial capital of the toal revenue.
What are the accounting journal entries to record a sale of inventory with discount?
debit accounts receivablecredit sales revenue
How do you calculate the Capital spending ratio?
The Capital Spending Ratio (CSR) is calculated by dividing a company's capital expenditures (CapEx) by its total revenue. The formula is: [ \text{Capital Spending Ratio} = \frac{\text{Capital Expenditures}}{\text{Total Revenue}} ] This ratio indicates the proportion of revenue that is being reinvested in the business through capital investments, reflecting the company's commitment to growth and infrastructure development. A higher ratio suggests a greater focus on capital investment relative to revenue.
Is rent a capital or revenue expenditure?
Rent received or paid both are revenue expenditures as it is to be received or paid at every month time.
Capital and revenue expenditure?
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.
What is the difference between capital and revenue expenditures and how each type of expenditure is disclosed in financial statement?
that's no hep!! tut tut!
What are leasing journal entries?
Leasing journal entries are the entries made in the accounting journals of both lessor and lessee to account for the expense or income of a lease. An example would be leasing of business equipment. The lessor would enter a credit in rent revenue and a debit in cash, while the lessee would enter a credit in cash and a debit in rent expense.
What are the difference between revenue expenditures and capital expenditures?
it must increase the value of the assets in must increase the capacity it must shown in the balance sheet must be depreciated amount must be comparatively huge
What is meant by surplus and deficit?
For a government that taxes and spends, there is revenue (income) and expenditures (outlays). When the expenditures exceed the revenue, the difference is a deficit, also referred to as a "shortfall". When revenue exceeds expenditures, there is money left over, and this is a surplus.
