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What is the differentiate between capital expenditure and recurrent expenditure and what are some examples?
Check out the related link to see the difference between capital expenditure and recurrent expenditure as well as some examples.
How should the capital assets of a capital lease be recorded in the capital projects fund?
Well, darling, the capital assets acquired through a capital lease should be recorded as both an expenditure and an other financing source in the capital projects fund. The amount recorded as an expenditure should be equal to the present value of the lease payments, and the same amount should be recorded as an other financing source to reflect the lease obligation. Just make sure to dot your i's and cross your t's, honey.
Do companies decide each year's dividend by looking at their capital expenditure requirements and then distributing whatever cash is left over?
While companies do consider their capital expenditure requirements when deciding on dividends, the decision is not solely based on leftover cash. Management typically evaluates a variety of factors, including earnings, cash flow, debt obligations, and overall financial health, as well as shareholder expectations and market conditions. This comprehensive analysis helps determine a sustainable dividend policy that aligns with long-term corporate goals. Ultimately, the goal is to balance reinvestment in the business with returning value to shareholders.
Why is it advisable to start with sales the production and capital expenditure forecast in the budgeting process?
Starting with sales forecasts in the budgeting process is advisable because it provides a foundation for estimating revenue, which is crucial for determining the financial feasibility of the budget. Additionally, sales forecasts can drive production forecasts, helping to align production capacity with expected demand. Capital expenditure forecasts should follow sales and production forecasts to ensure that investments are made strategically to support the anticipated sales and production levels. This sequential approach ensures that the budget is realistic and well-aligned with the overall business strategy.
What are Examples of nugatory expenditure?
Nugatory expenditure refers to spending that is considered trivial or worthless. Examples include purchasing inexpensive novelty items that provide minimal value, such as a cheap trinket or a single-use gadget. Other instances might include spending on minor subscription services that are rarely used, or excessive spending on luxury items that have little practical benefit. These expenditures often do not contribute significantly to overall well-being or financial goals.
What is the differentiate between capital expenditure and recurrent expenditure and what are some examples?
Check out the related link to see the difference between capital expenditure and recurrent expenditure as well as some examples.
What is the effect on wrong treated revenue expenditure as capital expenditure?
The effects it would has on net profit and net asset is that there would be an increase in net profit and an increase in net asset as well
What is the effect on wrong treated capital expenditure as revenue expenditure?
The effects it would has on net profit and net asset is that there would be an increase in net profit and an increase in net asset as well
What is nabors well service current wages for workover rigs?
After 3 month training period, you make $19.50/hr
How should the capital assets of a capital lease be recorded in the capital projects fund?
Well, darling, the capital assets acquired through a capital lease should be recorded as both an expenditure and an other financing source in the capital projects fund. The amount recorded as an expenditure should be equal to the present value of the lease payments, and the same amount should be recorded as an other financing source to reflect the lease obligation. Just make sure to dot your i's and cross your t's, honey.
What happens if revenue expenditure is recorded as a capital expenditure?
If that happens, there will be overstatment of the period's profit as well as overstatement of assets. This will reduce the future profit of business because the original costs of assets will be charged more to the Profit and Loss account in process of depreciation of assets.
What is the main expenditure of one attending university?
The main expenditure of attending university would be university tuition and books. University tuition is quite expensive, as well as books and housing.
Does the paid-up capital include preference capital or only equity capital?
Paid in capital includes the preference share capital as well as common share capital as well.
Which city is known as the music capital of Australia?
Sydney... it has the Sydney Opera House and that city is well known for it's music.
What is a derrick hand in an oil field?
Derrick Hand is the title of the person who works in the derrick of a workover oil rig. Workover oil rigs are usually portable, and they fix oil well problems like broken pipes, pump rods, and pumps. They pull thousands of feet of steel rod and/or tubing out of oil well pipes, sometimes miles. The derrick is the basket near the top of the rig (maybe 60 feet up), where the derrick hand attaches/detaches pump rod and tubing and leans or hangs it in sections so it can be replaced when finished. It is a very physically difficult job and pays very very well with little or no experience.
Is transformer 220v considered as fixed asset?
If it's a small one used for things like laptops then it would just classified as office expenditure and not a fixed asset. If however it is a large transformer with high value then it may well be.
What are the Steps involved in the preparation of receipts and payments accounts from income and expenditure accountgive examples?
Ignore the opening and closing cash and bank balances on the receipts and payments account. Eliminate all items of capital receipts and payments. Figure out the income of the year by deducting the total income received and adding the income accrued. Find the expenditure of the relevant period as well. When the account is balanced, it will show the surplus or deficit of the account.
