Definition:A revenue expenditure, also called an income statement expenditure, is a cost related to assets that are notcapitalizedbecause they will not provide a financial benefit in future periods. In other words, revenue expenditures are extra expenses incurred because of anasset, but they don’...
A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place. Revenue expenditures are often discussed in the context of fixed assets. The revenue expenditures take place after a fixed asset had been put into service and simply keeps the asse...
last the company for a couple of years so they are examples of capital expenditures. Repair costs for the fax or printer, however, are revenue expenditures since they are short-term costs. Things like Internet fees, rental or lease costs, and employee salaries are also revenue expenditures. ...
Operating expenses (OpEx) are also known as revenue expenditures and are the primary counterpart to capital expenditures. While capital expenditures are investments into long-term fixed assets with costs capitalized over a number of years, OpEx involve the expenses that come with running a business ...
Purpose: The revenue expenditures are made on purchasing the inventory for the purpose of resale and not for the purpose of personal use or office use. The expenditure is also incurred to buy raw material to convert the same into finished goods and selling them to customers. ...
A revenue expenditure is an amount that is spent for an expense that will be matched immediately with the revenues reported on the current period’s income statement. Examples of Revenue Expenditures Examples of revenue expenditures include the amounts spent on repairs and maintenance, selling, gener...
Also known as deferred expenses or deferred revenue expenditures, deferred expenditures are any type of business expenses that are paid for in one accounting period but are carried over into subsequent periods due to the benefit of those purchases providing benefits later on. Many companies account ...
Retained Earnings (RE) are theaccumulatedportion of a business’s profits that are not distributed as dividends to shareholders but instead are reserved for reinvestment back into the business. Normally, these funds are used for working capital and fixed asset purchases (capital expenditures) or allo...
Capital expenditures (CapEx) are funds used for one-time large purchases offixed assetsthat will be used for revenue generation over a longer period. This could be to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment. Revenue expenditures, on th...
s product. Gross revenue takes into consideration COGS. Gross revenue is the total amount of revenue generated after COGS but before any operating and capital expenses. Thus, gross revenue does not consider a company’s ability to manage its operating and capital expenditures. However, it can be...