However, in order to do the same, it needs to earn some revenue and incur certain expenditures. When a non-profit firm does so, it needs to prepare an income and expenditure account, which can help it in ascertaining the surplus earned or deficiency incurred during a period. Let...
124 CHAPTER 5 The Circular Flow of Income and Expenditure especially for durable goods like cars, led the decline in total GDP. Exports, also, decreased as U.S. trading partners also slipped into recession. Federal government purchases rose moderately, counter to the trend of other GDP component...
Administrative expenses:It can be defined as the expenditure incurred by a business or company as a whole rather than being the ones associated with specific departments of the same company. Some of the examples of administrative expenses are salaries, rent, office supplies, and travel expenses. ...
Finally, we have Leaving Work Behind. As you can see, my financial expenditure on this site is minimal. However, it does take up a great deal of my time, and that has become very noticeable over the last few weeks. As regular readers will know, I have gone to great lengths to promot...
abut serious problems soon arose. For example, software brittleness(breakdowns in handling a typical cases)and explanatory insufficiency (a printoutof cryptic procedural rules fails to clearly express to non-programmers the reasoning path that was followed by the software)were quickly recognized as troub...
So long as prices are stable and the tax is basically a tax on realized income and does not require anassessmentto be made of accrued but unrealized capital gains and losses, the income tax is generally held to be easier to administer than either anexpenditure tax(a tax on spending) or ...
Building on his theory, Keynesians have stressed the relationship between income, output, and expenditure. Since transactions are two-sided—in that one person’s income is another person’s expenditure—the relationship could be expressed in the form of a simple equation: Y = O = D, where Y...
What is the difference between a capital expenditure and a revenue expenditure? Give an example of each. What three financial characteristics can be monitored by analyzing your personal balance sheet? Describe three ways that pro forma statements are used in financial p...
INCOME&EXPENDITURE Whatisthenatureofthemultiplierandthemeaningofaggregateconsumptionfunction? Howdobothleadtochangesinconsumerspending? Howdoesexpectedfutureincomeandaggregatewealthaffectconsumerspending?OBJECTIVES:1.Producersarewillingtosupplyadditonaloutputatafixedprice.Asaresult,changesinoverallspendingtranslateintochanges...
income an individual has which helps in determining the amount of disposable income that can be spent on the purchase of goods and services. Besides this, the disposable income also Indicates how much of the disposable income an individual is going to save after all of his expenditure. ...