All categories

3 years ago

What are different types of expenditure and examples of each

1 answer:

4 0

<span> <span> 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.
</span> </span> <span> </span>

You might be interested in

Indicate which of the transactions in the following table will be included in (that is, directly increase) the GDP of the United

Zina [86]

Answer:

1. NOT INCLUDED IN THE GDP, TREETOPPLERS PRODUCES INTERMEDIATE GOODS, NOT FINAL GOODS.

2. NOT INCLUDED IN THE 2017 GDP, IT WOULD BE INCLUDED IN THE 2018 GDP SINCE THE SERVICE WAS FINISHED IN APRIL 2018.

3. INCLUDED IN THE GDP, A HAMBURGER IS A FINAL GOOD THAT FALLS UNDER PRIVATE CONSUMPTION.

4. NOT INCLUDED IN THE GDP, IMPORTS ACTUALLY DECREASE THE GDP SINCE THEY DECREASE NET EXPORTS.

5. INCLUDED IN THE GDP, A TABLE IS A FINAL GOOD THAT FALLS UNDER PRIVATE CONSUMPTION.

4 0

3 years ago

When the government provides free and reduced lunches to low-income students, it is addressing which type of market failure

Mkey [24]

A positive externality is when a good or service is produced and used in a way that benefits a party that is not directly involved in the market transaction.

<h3>What are the reasons for the Market Failure?</h3>

Externalities, public goods, market regulation, and a lack of knowledge are all possible causes of market failure. Market failures can be resolved through government involvement, such as new legislation, taxes, tariffs, subsidies, or trade restrictions.

The complete question is shown in the file attached below:

Thus, providing free and reduced lunches to low-income students by the government is a situation of positive externality where no directly involved in the market transaction.

Learn more about Market Failure here:

brainly.com/question/13123538

#SPJ1

7 0

2 years ago

Beth has just been hired as a cocktail waitress. she must be certified as a seller-server within:

Zielflug [23.3K]

The answer to this question is 30 days
This 30 days delay after certification is to make sure that the certification holder still stay up to certain standards even after the certification.
This ensure the quality and the validity of the certification process and meke it more trustworthy in the eyes of the consumers.

6 0

3 years ago

Davis hardware company uses a perpetual inventory system. how should davis record the sale of merchandise, costing $770, and sol

slega [8]

The required entries are as follows:

Dr. Cost of goods sold $770

Cr. Inventory $770

Dr. Accounts receivable $1,260

Cr. Sales revenue $1,260

What entries are required for sale of merchandise?

When merchandise is sold, the company's inventory reduces and cost of goods sold increases ,hence, the appropriate entries are to debit cost of goods sold in the income statement and credit the inventory account in the balance sheet.

Also, to account for sale on account, which means credit sales, the revenue account is credited with the sales value whereas the account receivables which represents claim from the customer is debited, this would happen for every transaction because the inventory system is perpetual.

Find out more about merchandise on:brainly.com/question/13720527

#SPJ1

6 0

2 years ago

A company's pretax cost of debt:

sertanlavr [38]

Answer:

Explanation:

Firstly, we need to keep in mind when it comes to cost of capital (debt or equity) is that it have to be incremental cost. Use bond yield to maturity rather than other yield to estimate cost of debt.

Let go through each of answer option one by one:

a. is based on the current yield to maturity of the company's outstanding bonds. => include both old bonds and recently-issue bonds => not incremental cost => False

b. is equal to the coupon rate on the latest bonds issued by the company. => Coupon rate is not relevant => Fasle

c. is equivalent to the average current yield on all of a company's outstanding bonds. => Current yield is not relevant => Fasle

d. is based on the original yield to maturity on the latest bonds issued by a company. => Meet all requirement => True

3 0

4 years ago