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3 years ago

What are different types of expenditure and examples of each

1 answer:

6 0

For the purpose of accounting, there are three types of expenditure. These are Capital Expenditure, Revenue Expenditure, and Deferred Revenue Expenditure.

Capital Expenditure 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.

Revenue Expenditure is 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.

Deferred Revenue Expenditure 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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One year ago, you purchased a stock at a price of $43.20 per share. The stock pays quarterly dividends of $.18 per share. Today,

gizmo_the_mogwai [7]

Answer:

Capital gain = $2.16

Explanation:

The return on equity is the sum of the dividends earned and capital gains made during the holding period of the investment.

Dividend is the proportion of the profit made by a company which is paid to shareholders.

Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal.

Therefore, capital gain as follows:

Capital gain = $45.36-43.20

Capital gain = $2.16

8 0

3 years ago

All of the accounts of the Grass is Greener Company have been adjusted as of December 31, 2016, with the exception of income tax

yulyashka [42]

Answer:

The income before tax is $370450, the income tax is $111135 and the net income is $259315.

Explanation:

As the data table is not visible,online a similar question is found for which the data is attached here with.

From the given data

Service Revenue=$943,000

Interest Revenue=$127,1000

Total Revenue=Service Revenue+Interest Revenue=$1070100

Now The expenses are given as

Supplies Expense=$349,200

Repairs and Maintenance Expense =$258,300

Depreciation Expense=$60,350

Rent Expense=$ 31,800

Total Expense=Supplies Expense+Repairs and Maintenance Expense+Depreciation Expense+Rent Expense=$699650

So the income before tax is given as

Income=Total Revenue-Total Expense

Income=$1070100-$699650

Income=$370450

So the income before tax is $370450.

Now the tax is estimated at 30% as given tax rate as

Tax=Rate*Income

Tax=30%*$370450

Tax=$111135

So the income tax is $111135.

Now the Net income is given as

Net Income=Income-Tax

Net Income=$370450-$111135

Net Income=$259315

So the Net Income is $259315.

8 0

3 years ago

A change in quantity demanded is caused only by

romanna [79]

Answer:

A change in quantity demanded is caused only by

A) price

B) a shift

C) Market

D) Income

The answer is Price(A)

Explanation:

Hope this helps :D

3 0

3 years ago

Read 2 more answers

Identify the principle of internal control to each of the following cases. 1. Cash is locked in a safe overnight. select princip

ivann1987 [24]

Answer:

1. Physical control

2. Segregation of duties

3. Pre-numbered documents

4. Segregation of duties

5. Establishment of responsibility

Explanation:

1. As this shows that someone locked cash in safe, so this will be physical control.

2. As this shows the division of duties among employees, so this will be segregation of duties.

3. As this shows documents are pre numbered so it comes under pre-numbered documents.

4. As this shows the division of duties for bookkeeper, so it comes under segregation of duties.

5. This shows the responsibility of any work on a person, so this will be establishment of responsibility.

4 0

3 years ago

If you live in a district where most of the constituents support stringent immigration policies, but your senator believes in am

ella [17]

Answer: Trustee

Explanation:

The trustee view is one of the type of representing model that helps in understanding the various types of role and responsibility of the representation and it also provide the effective resolution for the given problem or any type of issue.

According to the given question, the Trustee view of representation helps in effectively manage the immigration policies and also choosing their right to vote for the constituency.

Therefore, Trustee is the correct answer.

7 0

3 years ago