Give Two Examples Of Revenue Expenditure

Ii expenditure on purchasing computers.

Give two examples of revenue expenditure. Repair of machinery building furniture etc. Immaterial items which may benefit many years e g. Payment of salaries or any operating expenses 2. Revenue expenditure is the sum of the expense that the business incurs in the production of goods and services which helps for revenue generation of the company in an accounting period.

Purchase of current assets e g. Furthermore as per the matching principle the expense should be matched with the revenue earned during the period to be regarded as revenue expenditure. Maintenance of non current assets 3. If the expenses made by the firm helps in the generation of revenue for the current accounting period it is considered as an operational expense.

Their primary revenue is from services provided to customers. For service provider businesses for example. Example 2 cost of labor. An expenditure is a capital expenditure if the benefit of the expenditure extends to several trading years.

Direct and indirect the indirect form has already been covered in example 1 in the form of expenditures that are required to maintain a piece of machinery equipment or the business in general. Revenue expenditures can be classified in two forms. Chartered accountants law consultants barber shops software professionals etc. Give any two examples for revenue expenditure get the answers you need now.

It is primarily two types one is related to the cost of sales and the other is related to opex. Is the following revenue expenditure or capital expenditure in the context of government budget. Many businesses for example manufacturing grocery stores retail stores etc. The business expenditures are of two types capital expenditures revenue expenditures capital expenditures definition and explanation of capital expenditures.

Following are the examples of revenue expenditure. Give two examples of revenue expenditure. Revenue expenditure also includes the expenditure incurred for the purchase of raw material and stores required for manufacturing saleable goods and the expenditure incurred to maintain the fixed assets in proper working conditions i e. Capital expenditure may include the following expenditures expenditure incurred on the acquisition of fixed assets tangible.