What is the difference between capital expenditure & revenue
expenditure
- 2 Answers
- 6697 Views
- I also Faced
- E-Mail Answers
Answer Posted / venu gopal joshi
Capital expenditure is one which is incurred to earn revenue
income for the business.
Ex: Purchase of Machinery for production.
Revenue expenditure is incurred for running the business.
Ex:payment of salaries, Electricity bill etc.
| Is This Answer Correct ? | 5 Yes | 0 No |
Post New Answer View All Answers
The following information is extracted from the audited books of accounts of a chain of food stores for the period ended 31st December 2015. Revenue Statement (Trading and Profit and Loss Account for the year ended 31st December 2015. BWP’000 BWP’000 Sales 460 Cost of good sold (220) Gross profit 240 Wages 50 Other expenses 30 (80) Net Profit 160 Note: The purchase figure included in the cost of goods sold of P255 000. Balance Sheet as at 31st December 2015 BWP’000 BWP’000 Fixed Assets 400 Current assets: Stock 80 Debtors (trade) 120 Bank 400 ----- [600] Current liabilities: Trade creditors 300 ------ [300] 300 Net Assets 700 ==== Financed by: Share capital 600 Revenue reserves 100 ------ 700 Shareholders Funds 700 ===== Required: (a) Calculate the following accounting ratios: (i) Current ratio (ii) Acid test ratio (iii) Stock turnover (in days) (iv) Debtors turnover (in days) (v) Creditors turnover (in days) (vi) Return on capital employed (ROCE) (vii) Gross profit percentage (viii) Net profit percentage (b). Give a brief comment on the performance of the company, based on the above ratios.
a.what products does your firm produce? b.what costs are asssigned to the product produced? c.for particular product,what direct materials are used? d.what percentage of total manufactoring costs is direct labor? direct materials?overhead? e.how is overhead assigned to the products? f.do you now use or plane to use an activity_based management system?why or why not?
There is no item category assigned to account
What is account payee cheque? Expand ctc cheque?
what is use of cost category ? which type is useful in accounting work ? give answer with solid example because iam slow learner in accounting line.
Tell me what is your track record for consistently achieving your targets?
what is your opinion regarding T.V shows on youth
why i want to join Hawkins company
WHICH QUESTIONS ASKED IN EPFO IN 2009.
describe any accounting process that you have developed or revised
Tell me which accounting application you prefer most and why?
IS METHODEX IS GOOD INSTITUTE FOR SAP FICO MODULE TRAINING. IS IT IN BANGALORE OY HYDERABAD.
Do you use social media to identify prospects?
As you know account executives need to be talented salespeople. Do you have experience making sales?
The following are the list of Balances of SUNSHINE Company as at 1.2.2012 RM Land and building 450,000. Furniture and Fittings 35,000. Office Equipment 25,000. Motor Vehicles 75,000. Inventory 5,000. Trade Receivables 12,000. Trade Payables 8,000. Bank Loan 200,000. Bank 13,000. Cash in Hand 1,000. Capital 408,000.
