Revenue Budget Also Known As

Capital budget involves a number of factors that should be considered thus complex in nature.

Revenue budget also known as. The amount of money allocated to the maintenance and growth of a business. The expenditure under budget is divided into two subheads. Revenue budget is a main budget that is prepared for the year as a part of the budget process. Revenue budgets help business s.

Finally interest and taxes are deducted to reach the bottom line of the income statement 3 0 billion of net income. A revenue budget is essential to management and is the result of a business s forecasts of sales revenue expenses and capital expenditures. Revenue expenditure is expenditure for normal running of the government department and various services interest charges on debt incurred by government subsidies and so on. These expenditures and receipts are related to the day to day functioning of the government.

Revenue budget is less complicated compared to capital budget. Salaries of employees interest payments on past debts grants given to state governments etc. Q5 what is a revenue statement budget also known as the profit and loss budget from aa 1. This is because the expenditure and the staff levels of the business must be in line with the expected revenue.

There are different ways to calculate revenue. Similarly when the government is performing its day today functions lot of revenue will be accrued to it. Revenue budget involves revenue receipts and revenue expenditure. Expenditure is needed to finance government functions like defense social services administration etc and these are the main revenue expenditures.

Sales budget also known as revenue budgets it gives the projected sales either in units sold or revenue amount. Ebit is also sometimes referred to as operating income and is called this because it s found by deducting all operating expenses production and non production costs from sales revenue.