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...
Revenue is the amount a company receives from selling goods and/or providing services to its customers and clients. A company’s revenue, which is reported on the first line of its income statement, is often described as sales or service revenues. Hence, revenue is the amount earned from cus...
Nature of Business: When a company trades in computer systems and its parts, it is considered as inventory for that firm and the cost of buying suchinventoryis a revenue expenditure. But for the rest of the companies, it is acapital expenditure, as it is going to assist the firm in gene...
An example of a revenue expenditure is an additional cost attached to a fixed asset like a piece of machinery. Some machines need to be cleaned and lubricated regularly. These costs don’t really add any value to the machine. They are just necessary to keep the equipment running. ...
What is raising revenue and reducing expenditure? 开源节流 I agree with the famous saying. Today I cannot agree more when I back when I come back home seeing something. Just as the benefits issued by the government and I love this very much. What's happier is that I am always so ...
Capital ExpenditureRevenue Expenditure It is an expenditure incurred to buy a fixed asset or any asset which has a long useful lifeIt is an... Learn more about this topic: Comparing Revenue Expenditures & Capital Expenditures from Chapter 9/ Lesson 9 ...
A common example of a deferred expenditure is the cost of advertising. When a company launches a new advertising campaign, the chances of achieving immediate benefit in terms of revenue may or may not be present. Typically, the returns that are generated directly as a result of the advertising...
Deferred revenue refers to a customer’s prepayment for goods or services that a company will deliver in the future. This advance payment is a financial obligation of the company to the customer, and appears as a liability on the balance sheet.
Example of Capital and Revenue Expenditures Tesla (TSLA) is an automobile manufacturer of electric vehicles. Below is a truncated portion of the company's income statement and cash flow statement as of the company's 10-Q report filed on June 30, 2020.1 ...
(1997). "What is capital expenditure? How lodging- industry financial executives decide." Cornell Hotel and Restaurant Administration Quarterly 38(4): 28-33.Schmidgall, R., Damitio, J., & Singh, A. (1997). What is a capital expenditure? How restaurant industry financial executives decide. ...