UrbanPro

Take BCom Tuition from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

Search in

What is revenue expenditure?

Asked by Last Modified  

Follow 1
Answer

Please enter your answer

Revenue expenditures are small expenditures which are related to day to day business that could be incurred direct or indirect to earn revenue. Hence, they are always shown in profit and loss account unlike capital expenditure which are adjusted/added to the cost of asset. Eg. Of revenue expenditures...
read more
Revenue expenditures are small expenditures which are related to day to day business that could be incurred direct or indirect to earn revenue. Hence, they are always shown in profit and loss account unlike capital expenditure which are adjusted/added to the cost of asset. Eg. Of revenue expenditures are salaries of the staff, stationery/administration expenses, depreciation, repairs etc read less
Comments

Revenue expenditure is the expenditure related to Normal course of the business and the benefit from that expenditure can be derived only in one accounting period. For example salaries,commission etc.Capital expenditure means that expenditure which gives you benefit over multiple accounting period. For...
read more
Revenue expenditure is the expenditure related to Normal course of the business and the benefit from that expenditure can be derived only in one accounting period. For example salaries,commission etc.Capital expenditure means that expenditure which gives you benefit over multiple accounting period. For example purchase of assets. read less
Comments

Revenue Expenditures are incurred during the ordinary course of business for carrying out usual operational activities. And no future economic benefits are related to these expenditures. For Example: With the event of Purchasing one Machine, future economic benefits are related to this event. Because...
read more
Revenue Expenditures are incurred during the ordinary course of business for carrying out usual operational activities. And no future economic benefits are related to these expenditures. For Example: With the event of Purchasing one Machine, future economic benefits are related to this event. Because Business must have concern to manufacture the products using the machine for more than one year. Therefore, purchasing machine is not revenue expenditure, this is the capital expenditure. However, payment for factory wages, printing and stationary expenses, purchasing raw material are the revenue expenditures. Because the economic benefits will not be derived in future, the economic benefits derived are for particular financial year only. Capital Expenditure are always shown in the balance sheet at asset side., however revenue expenditure are treated as an expense item in Profit and Loss Account. read less
Comments

Commerce/ Ensglish Speaking Expert

As expenditure which is not a capital expenditure is a revenue expenditure i.e any routine expenditure for day to day expenses is a revenue expenditure. Few examples are printing and stationery, electricity etc
Comments

Chartered Accountants with 5 years teaching experience.

Revenue expenditure is expenditure is related to Maintained capacity , normally related to within 1 year ( Example Repairing M Mon Machinery. Capital expenditure is Improved efficiency , Normally usage More than one year ( Example Purchased Machinery.
Comments

Tutor

Revenue expenditures include the ordinary repair and maintenance costs that are necessary to keep the asset in working order without substantially improving or extending the useful life of the asset. Revenue expenses related to existing assets include repairs and regular maintenance as well as repainting...
read more
Revenue expenditures include the ordinary repair and maintenance costs that are necessary to keep the asset in working order without substantially improving or extending the useful life of the asset. Revenue expenses related to existing assets include repairs and regular maintenance as well as repainting and renewal expenses. read less
Comments

Capital expenditures are those expenditures which enhance the capacity of the asset beyond its standard. Here the standard means the orignal capacity of the asset when you bought it. For example if you purchase an inverter before 3 yr embeded battery of say 200 MAH.and now if you spent Rs.20000 to purchase...
read more
Capital expenditures are those expenditures which enhance the capacity of the asset beyond its standard. Here the standard means the orignal capacity of the asset when you bought it. For example if you purchase an inverter before 3 yr embeded battery of say 200 MAH.and now if you spent Rs.20000 to purchase a new battery for such inverter of same capacity then here you are not enhancing the capacity of such inverter beyond the standard.however if you bought a battery of say 250 MAH then it will lead to enhancment of capacity beyond standard. And all of such expenditure including freight and installation charges if any should be capitalise. If an expense did not enhance the capacity or is not providing benefits of enduring nature then such expense should be treated as Revenue expenditure. read less
Comments

View 5 more Answers

Related Questions

What is the meaning of equity?
Ownership interest in a corporation in the form of common stock or preferred stock.
Nandita
0 0
9

Difference between a Businessman & an Entrepreneur??

The primary distinction between a businessman and an entrepreneur lies in their mindset and approach to business. A businessman typically operates within established models, concentrating on stable operations...
Abhishek Srivastava
0 0
8
What is long-term debt?
Debt like loans debentures...more than 1year period
.
0 0
8
Is it necessary to join tuition for a B.Com if I am pursuing a CA?
Not necessary, u will learn more in your CA program and comparing then the syllabus of b.com will not at all hinder u. Just give few hours for b.com syllabus and balance your studies u will not required...
Reshma
0 0
8

 Write a report for an English newspaper on the Republic Day celebrations held at your college. *

Like every year, this year, also all the students and faculty members of our XYZ School/College had organized a grand program on the occasion of this Republic Day. Everyone was feeling very happy that...
Anusha
1 0
6

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons

Banking Ombudsman Scheme 2006
Banking Ombudsmen Scheme Banking Ombudsman is a quasi judicial authority functioning under India’s Banking Ombudsman Scheme 2006, and the authority was created pursuant to a decision made by the...
M

M. Mallick

1 0
1

Accountancy Basics
Assets - Dr balance Liability- Cr Balance Expence-Dr Balance Income- Cr Balance To Increase Debit Balance Account- Dr To Decrease Debit Balance Account- Cr To Increase Credit Balance Account- Cr To Decrease credit Balance Account- Dr
A

Akhil Mathew

1 0
0


Types of Financing
Bridge Financing: Bridge finance refers to loans taken by a company normally from commercial banks for a short period because of pending disbursement of loans sanctioned by financial institutions. The...
F

Raising Fund through Commercial Paper.
Raising Fund through Commercial Paper: Every business requires the funds for expansion. The requirement of fund can be both Long term and short term. The cost of raising funds for a business is very...

Recommended Articles

With the mushrooming of international and private schools, it may seem that the education system of India is healthy. In reality, only 29% of children are sent to the private schools, while the remaining head for government or state funded education. So, to check the reality of Indian education system it is better to look...

Read full article >

Appearing for exams could be stressful for students. Even though they might have prepared well, they could suffer from anxiety, tension etc. These are not good for their health and mind. However, following a few exam preparation tips can save them from all these and help them to score good marks. Let’s find out all...

Read full article >

While schools provide formal education to the children, the home is where they start learning about things informally. Parents think that schools will take the initiative to educate their children. Well, this is partially true, as parents also play an essential role in bringing up their child. For the development of particular...

Read full article >

With the current trend of the world going digital, electronic renaissance is a new movement that is welcomed by the new generation as it helps makes the lives of millions of people easier and convenient. Along with this rapidly changing movement and gaining popularity of Internet, e-Learning is a new tool that emerging...

Read full article >

Looking for BCom Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you
X

Looking for BCom Tuition Classes?

The best tutors for BCom Tuition Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Take BCom Tuition with the Best Tutors

The best Tutors for BCom Tuition Classes are on UrbanPro

This website uses cookies

We use cookies to improve user experience. Choose what cookies you allow us to use. You can read more about our Cookie Policy in our Privacy Policy

Accept All
Decline All

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more