capital expenditure , revenue expenditure
- 6 Answers
- 9902 Views
- RRDonnelley, Wipro, I also Faced
- E-Mail Answers
Answer Posted / waqar hussain
if the company incured the expenditure and enjoy the
benefit for more than one accounting period is called
capital expenditure. e.g. company purchase fixed asset for
the production of goods.
if the company incured the expenditure for the operation of
business and enjoy the benefit from such expenditure up to
one year is called revenue expenditure. e.g. purchase the
floating assets of the business.
(floating assets means raw material of busines)
| Is This Answer Correct ? | 4 Yes | 1 No |
Post New Answer View All Answers
What is ABC Analysis in industrial function. hw can it s maintain ?
what do you meant auction? what is F & o segment?
Nature of training account with reason
Whether construction of office cum storage comes under CMA under Agriculture or Non Farm Sector
What is intangiable asset?Which contents are to be verified during cheking the Transporters' bills?
Define control account Thanks
Short Answer on __________Leverage
Expand BFSI
From the following information you are to prepare a Cash Budget for the period from July to December 2008. (i) The estimated sales and expenses are as follows: June July Aug. Sep. Oct. Nov. Dec. Sales 35,000 40,000 40,000 50,000 50,000 60,000 65,000 Purchases 14,000 16,000 17,000 20,000 20,000 25,000 28,000 Wages & Salaries 12,000 14,000 14,000 18,000 18,000 20,000 22,000 Expenses 5,000 6,000 6,000 6,000 7,000 7,000 7,000 Interest Received 2,000 - - 2,000 - - 2,000 Sale of Fixed Assets - - 20,000 - - - - (ii) Sales are 20% in cash and balance on credit. 50% of the debtors are collected in the month of sales and the remaining in the next month. (iii) The time lag in payment of purchases and expenses is 1 month. However, wages and salaries are paid fortnightly with a time lag of 15 days. (iv) The company maintains a minimum cash balance of Rs. 5,000. The cash balance in excess of Rs. 7,000 is invested in government securities in multiples of Rs. 1,000. Short falls in cash balance are made good by borrowing from banks. The interest received as well as paid is to be ignored.
What is the analytical way of accounting?
What is mean by Reserve on Consolidation?
explain the financialand economic meaning of investment?
If we spend a sum of Rs.10 Lacs towards Processing and Upfront fee for obtaining working capital term loan. can we treat this amount as a deferred revenue expenditure or not
where does the closing stock appears in the trial balance?
Short Answer on _______Appropriation
