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For the purpose of accounting, there are three types of expenditure.
1) Capital Expenditure
It is the amount incurred
in acquiring long term assets like land, buildings, equipments (which
are used for the purpose of earning revenues). These costs are reflected
in the account of Property, Plant and Equipment.
2) Revenue
Expenditure
It is the cost incurred in one accounting year wherein the benefits
are also enjoyed in the same period only. It does not increase the
earning capacity of the business, instead, it maintains the existing
earning capacity of said business. This expenditure is recurring in
nature like salaries and wages, selling and distribution expenses.
3) Deferred
Revenue Expenditure
It is a revenue Expenditure which has been incurred
within the current accounting year but its benefit will be extended to a
number of years. This cost is charged to the Profit and Loss account.
Example of this is advertising cost.
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Answer:
e
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
If 11 inventories were sold, the inventory left would consist of 13 units purchased on the 2nd and 5 units the company had on the 1st
Inventory value = (13x 26) + (5 x 24) = 458
Answer:
D
Explanation:
It was never made when Earth was made
<span>This is due to inadequate customer service gap and mismanagement in catering section.There should be proper management in catering section and quality of food supplied must checked in timely manner. Good management and well catering services are essential needs of a good hotel.</span>
Answer:
Firm value in millions 1,605 (one thousand six houndred five milllions)
Explanation:
To evaluate a firm based on the free cash flow we do a procedure similar to gordon dividend grow model
We are going to replace dividend for the free cash flow
and the return for the WACC
notice we are given with the current FCF and for the gordon model we require dividend for the next year. (time=1)
here we need the same
FCF x (1+g) = 120 x (1 + 0.07) = 128.4
WACC .15
grow 0.07
Firm value in millions 1,605 (one thousand six houndred five milllions)
