Revenue Expenditures Are Quizlet

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Revenue expenditures are quizlet. Revenue expenditures like those below are reported on the monthly revenue bill against that expense period s week month quarter revenue. Learn revenue expenditures with free interactive flashcards. Revenue and expenditures in order to fund all the government s programs the government must bring in money. Revenue expenditures are typically referred to as ongoing operating expenses.

Which are incurred for meeting day today requirements of a business and the. Revenue expenditure refers to those expenditures which are incurred during normal business operation by the company benefit of which will be received in the same period and the example of which includes rent expenses utility expenses salary expenses insurance expenses commission expenses manufacturing expenses legal expenses postage and printing expenses. The revenue expenditures take place after a fixed asset had been put into service and simply keeps the asset in working order. Are additional costs of plant assets that do not materially increase the asset s life or its productive capabilities 2.

Definition of revenue expenditure. Revenue expenditure money spent to maintain assets and to operate the business day to day. When the expenditure takes place multiple times in an accounting year then also the expense is considered as revenue expenditure. Money coming to the gov called revenue.

The expenditure is also incurred to buy raw. Any expense that recurs consistently over a given time is a revenue expense. The revenue expenditures are made on purchasing the inventory for the purpose of resale and not for the purpose of personal use or office use. All the expenditures which are incurred in the day to day conduct and administration of a business and the effect of which is completely exhausted within the current accounting year are known as revenue expenditures these expenditures are recurring by nature i e.

For example any maintenance costs to a building owned by your company are revenue expenditures. Choose from 222 different sets of revenue expenditures flashcards on quizlet. Comment related questions on accounting. This test can only be taken once.

Accounting provides information on a. Are known as balance sheet expenditures 3. Revenue expenditures are often discussed in the context of fixed assets. Revenue expenditure does not improve the financial position of the business.

These expenses tend to be recurring in nature and decrease profit for the year and in turn decrease equity and will affect the income statement. Cost and income for managers.