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3 years ago

What are different types of expenditure and examples of each

1 answer:

4 0

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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Scenario D. Jimena works for a small company that makes nut butters from ingredients like cashews and macadamia nuts, and jams f

s2008m [1.1K]

Answer:

D. best-case scenario.

Explanation:

This is true because, there are two scenarios involved in the production- Jimenas' company's production method and Spicy Sides company's method. She is trying to compare the two production methods and comes up with the best case scenario that leads to low cost of production.

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3 years ago

According to the discussion of the "color of money," blue money is

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Blue money is the highest banknote

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4 years ago

Read 2 more answers

The manager of Brick Company is given a bonus based on income before income taxes. Net income, after taxes, is $11,200 for FIFO

Snezhnost [94]

Answer:

b. $400

Explanation:

Brick Company

Calculation of how much higher the manager's bonus will be if FIFO is adopted instead of LIFO

Using this formula

(Net income FIFO - Net income LIFO)×Bonus rate

($11,200 -$9,800) × .20

=$1,400×.20

= $280

Hence,

$280 ÷(1 - tax rate 30%)

$280÷0.7

= $400

Therefore the amount higher that the manager's bonus will be if FIFO is adopted instead of LIFO would be $400

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3 years ago

Your Insurance company bills you $687.89 every 6 months for your premium payments. You decide to pay per month.

eimsori [14]

Answer:

$114.65

Explanation:

If you divide $687.89 by 6 months you'll get $114.64833333333333333 but if you simply you'll get 114.65 and you'll only pay $0.11 over.

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3 years ago

A television commercial describing why sure antiperspirant works better than right guard antiperspirant is an example of primary

jenyasd209 [6]

The answer is false. Primary demand advertising is any kind of marketing that fuels the chief demand for an item for consumption. Primary demand advertising instructs the consumer base about the aids of a whole product class but in the question it doesn’t. In the problem it is a selective demand advertising. It pursues to indicate the advantages of one brand of product above the products of rival companies.

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3 years ago