What is revenue, expense & drawing in accounting? [examples]

What is Revenue Expenditure? | ACCOUNTING

A company will have different types of expenditure, how will revenue expenditure be treated in the accounts?

what is revenue expenditure?

Usually, a business will have cash coming in, which is can be known as income, and cash going out which can be referred to as expenditure.

Expenditure can be defined as a payment or agreement to make a payment which in return a benefit, asset, or service will be received. Business expenditure can range anything from the purchase of office furniture to paying the petrol bill to refill a van.

As there is such a mixture of expenditures, it may be beneficial for a business to categorize them into particular groups as these will possibly be treated differently in the accounts. In the accounting world, there is the idea that is adopted in the practice of categorizing expenditure into two main categories.

The main difference between revenue expenditure and capital expenditure can be demonstrated by the total cost of operating a motor vehicle. Initially acquiring the motor vehicle for the business is an example of capital expenditure. This is because the vehicle will be in the business for use for at least a few years and therefore is a fixed asset.

On the other hand, paying for petrol to use in the motor vehicle will be a revenue expenditure. This is mainly because the petrol or expenditure will be used up in a short time and does not add long-term value to the fixed asset.

Additionally, it is fundamental that there is a correct distinction between capital and revenue expenditure as this is essential to determine a correct value for the profit and assets of a business.

Expenses Definition - What are Expenses? | ACCOUNTING

Expenses definition with a discussion of key components in the definition and examples to illustrate the term if expenses. The definition of expenses: Outflows or using up of assets as part of operations of a business to generate sales/revenue. Expenses are what the business consumes in order to achieve the goal of generating revenue.

Define the term of expenses according to fundamental accounting principles while the 22nd edition the definition of expenses as arm outflows or using up of assets as part of operations of a business to generate revenue or sales.

key terms here being that we are looking at our goal of the business the goal generally to be revenue or sales that are the objective expenses are us using up the assets in order to help us achieve that goal.

we usually have some idea of what expenses are if we were to ask someone what expenses are probably would hear a list of expenses as an answer but when we actually record expenses we often get confused in terms of what's an expense and what's an acid if we purchase something.

if we consume our cash by expending it and receive something is that thing we receive that expense or is it an asset the point in time that we consume that expense that assets and consume it that's when it turns into an expense for example if we look at some common expenses we can look at a phone.

if we think about a phone the phone itself might be an asset because it's gonna help generate revenue in the future the phone bill represents the step that we have used the consumption of the use of the phone that's what it's going to be an expense because we consume that portion of it.

Meaning Of Expenses In Accounting | ACCOUNTING

Expenses in accounting are often considered that the term expenses and expenditure mean the same but in accounting, these two terms have separate meanings the term expenditure is broader term expenses are a part of the expenditure.

Basically, expenditure is of three types

capital expenditure

revenue expenditure

deferred revenue expenditure

we will go into detail about the meaning of the term expenditure here we are just trying to understand how are expenses different from expenditure.

so the expense is a part of the revenue expenditure therefore we can say that revenue expenditure includes expenses are the costs incurred for generating revenue.

Revenue and Capital Expenditure | CA CPT

you will learn and study Revenue and Capital Expenditure deferred revenue expenditure, etc. This video is helpful in the CA CPT Examination.

Every business has cash inflows and cash outflows inflows come from the sale of its goods or services or by taking a loan or flows of payments for various things light stationery computers equipment or land.

This income and expenditure can be revenue or capital in nature hence it is very important to understand the nature of the transaction so that accounts can be classified and maintained correctly as per applicable routes, and expenditure can be classified according to their nature.

we have capital expenditure.

revenue expenditure.

deferred revenue.

Revenue meaning, definition & pronunciation | What is Revenue? | How to say Revenue

Definition of the word revenue noun the income returned by an investment.

The total income received from a given source. all income generated for some political entities' treasury by taxation and other means.

the total sales turnover the net income from normal business operations net sales a return something paid back revenue.

Capital and Revenue Expenditure | ACCOUNTING

I look at the topic of Capital and Revenue Expenditure.

This video explains the terms capital and revenue expenditure and then looks at different examples of capital and revenue expenditure for an organization. At the end of the video, there is a short quiz enabling you to test your level of knowledge and understanding of this topic.

capital and revenue expenditure In this video you should be able to define the terms capital and revenue expenditure and also provide examples of capital and moving your expenditure.

let's start by looking at what is meant by the term expenditure is money that goes out of the business now applying that term expenditure and putting the word revenue in front of it what we're actually looking at is revenue expenditure is expenditure that is related to the day to day training of an organization.

This means costs that occur through doing what the business has to do normally trade.

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