Classify Revenue or capital expenditure?
Q: Define the term capital expenditure.
A:
Q: Describe term net asset value (NAV)?
A: Net asset value (NAV): It describes an entity's net worth, which is measured as the complete value…
Q: Describe the Capital Expenditure process
A: Capital expenditure as the term suggest is a one time usually a balance sheet item. Usually a…
Q: Why is it necessary to make a distinction between Capital and Revenue Receipts and Capital and…
A: Capital receipts: These receipts are income that is earned from the investment and financing…
Q: How to Make Reporting for Capital Position According to PSAK?
A: Financial reporting:Financial reporting can be defined as the financial information of organization…
Q: What is the purpose of using the retained funds?
A: After paying the dividends, the company retains the remaining net income which is called addition to…
Q: What is a donated capital and how it is accounted?
A: Donated capital is defined as assets given as gift to the entity.
Q: What exactly is the analytic hierarchy process (AHP) and how can it be used to the process of making…
A: ANALYTIC HIERARCHY PROCESS: It is the method for managing and identifying, organizing the complex…
Q: what is return on assets?
A: Return on Assets (ROA):- It is an indicator of how profitable a company is relative to its total…
Q: Emoluments, pensions and gratuities, as well as debt service charges are categorized asdevelopment…
A: First of all we need to understand the basic meaning of Development expenditure. Development…
Q: the difference between capital expenditure and revenue expenditure.
A: Expenditure is defined as spending money on something. This can be a cash payment or the exchange of…
Q: What are the Return on Total Assets?
A: Return on total assets: Return on total assets (ROTA) is a ratio that calculates a corporation's…
Q: Choice Are revenue expenditures.
A: Extraordinary repairs are repairs that are of high cost and increase the useful life of the asset…
Q: Define capital expenditure
A:
Q: Describe the process of making Capital-Expenditure Decisions?
A: Capital Expenditure Decisions include those decisions which require deciding on the purchase of…
Q: What are Sources of Funding?
A: The process that involves determining the fund requirement, identifying and selecting the optimum…
Q: Differentiate between a capital investment and an expense investment
A: Investment refers to the allocation of the funds in the assets in order to get returns. The…
Q: Define the term revenue expenditure.
A: Fixed Assets: It refers to the long-term assets having a useful life of more than a year which…
Q: What is the revenue project?
A: Revenue refers to the income generated by the company by performing certain operations or business…
Q: Define the term revenue recognition.
A: Accounting principle: These are the guidelines which are to be applied while preparing the…
Q: What is the difference between capital expenditure and revenue expenditure? Give an example of each.
A:
Q: Why should the capital expenditures be capitalized?
A: Capital Expenditures: Capital expenditures are those which provide future economic benefits by…
Q: Distinguish between the accounting for capital expenditures and revenue expenditures.
A: Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is,…
Q: When does the Capital expenditures occur?
A: Capital expenditure is the money spent by business on acquiring fixed assets like land, building…
Q: Determine Total Assets value?
A: Introduction: Assets: Any resource having monetary value called as Assets. Assets are of two types…
Q: What is Capital Fund? How is it calculated?
A: Capital Fund: It is the Excess of assets over liabilities for non profit organisations is termed as…
Q: What is the difference between capital expenditure and revenue expenditure?
A: Capital Expenditure: Expenses Incurred and the corresponding benefit out of such expenses lasts for…
Q: What is capital assets?
A: Capital asset means property of any kind like land, machinery, building, computer, vehicles,…
Q: What factors need to be considered in determining whether a receipt is of an income or of a capital…
A: The essential distinction between Capital Receipt and Income is the "purpose" with which the asset…
Q: Define how to record capital expenditure.
A: Capital expenditure: It refers to the amount spent on acquiring, maintaining, and improving the…
Q: Differentiate the Revenue Cycle and Expenditure cycle
A: The processes of the business are divided into different accounting cycles. The revenue cycle,…
Q: What is the return on total assets given the figures attached?
A: Return on total assets is the comparison of operational income with that of the total assets. It…
Q: Identify and distinguish between the physical and financial components of the expenditure cycle.
A: The whole expenditure cycle divided into monetary and non-monetary transaction .the financial…
Q: Explain why it is important to distinguish between capital expenditure and revenue expenditure, and…
A: Expenditures: The Expenditures are the way of spending money on something, or the money that is…
Q: capital expenditure or a revenue expenditure.
A: Answer – Capital expenditures are those expenditure which improves the performance of assets and…
Q: What is revenue?
A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…
Q: compare ordinary assets from capital assets
A: Ordinary Assets:- A per tax code Ordinary Assets are the assets which are held by the tax payer for…
Q: What is a capital expenditure versus a revenue expenditure?
A:
Q: Distinguish between revenue and capital expenditures, and account for them.
A: Meaning of Expenditure Expenditure is the amount of various expenses incurred for the operations of…
Q: Explain, using practical example how Capital expenditure should be capitalized?
A: Capital expenditure can be defined as an expense made for the purchase of a long-term physical or…
Q: Which one of the following is a revenue expenditure?
A: Revenue expenditure: It refers to the amount spent on normal maintenance and repairs of fixed assets…
Q: Define the term financial assets.
A: Financial Assets: Financial assets are referred to as assets that occur from contractual agreements…
Q: How are the sources of funds indicated?
A: firms can be evaluated using three financial statements: balance sheet income statement cashflow…
Classify Revenue or capital expenditure?
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- Value chain and classification of costs, computer company. Dell Computer incurs the following costs:a. Utility costs for the plant assembling the Latitude computer line of productsb. Distribution costs for shipping the Latitude line of products to a retail chainc. Payment to David Newbury Designs for design of the XPS 2-in-1 laptopd. Salary of computer scientist working on the next generation of serverse. Cost of Dell employees’ visit to a major customer to demonstrate Dell’s ability to interconnect withother computersf. Purchase of competitors’ products for testing against potential Dell productsg. Payment to business magazine for running Dell advertisementsh. Cost of cartridges purchased from outside supplier to be used with Dell printers1. State whether each of the below is Capital Expenditure or Revenue Expenditure.a. Purchase of new delivery vehicleb. Payment of an invoice for advertisingc. Costs of clearing the site ready for an extension to the factory buildingd. Signwriting on the outside of the new delivery vehiclese. Redecoration of the officef. Payment of delivery driver’s wagesg. Fuel for delivery vehiclesh. Fitting of shelving in delivery vehicleMatch each of the following cost items with the value chain business function where you would expect the cost to be incurred: Cost Item 1. Labor time to repair products under warranty 2. Radio commercials 3. Labor costs of delivering customer orders 4. Testing of competitor's product 5. Direct manufacturing labor costs 6. Development of order tracking system for online sales 7. Design cost of new product brochures 8. Hours spent designing childproof bottles 9. Training costs for representatives to staff the customer call center 10. Installation of robotics equipment in manufacturing plant Business Function
- Which of the following is NOT a period cost? Multiple Choice O Depreciation of photocopiers in the office. Salary of the accounts payable clerk Insurance on a company showroom where customers can view new products. Salary of the plant supervisor.Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory Indicate whether each period cost is a selling expense or an administrative expense. Costs a. Annual bonus paid to the chief financial officer of the company b. Annual fee to a celebrity to promote the aircraft c. Cost of electronic guidance system installed in the airplane cockpit d. Cost of the flight data recorder (the black box) for the airplane e. Cost of normal scrap from production of the airplane body f. Cost of small replicas of the airplane used to promote and market the airplane g. Cost of paving the headquarters employee parking lot h. Decals for cockpit door, the cost of which is immaterial to the cost of the final product 1. Depreciation on factory equipment j. Hourly wages for janitorial staff for the factory k. Hydraulic pumps used in the airplane's flight control system 1. Instrument panel installed in the…Identification. Pocket Umbrella, Inc., is considering producing a new type of umbrella. This newpocket-sized umbrella would fit into a coat pocket or purse. Classify the following costs of thisnew product as direct materials, direct labor, manufacturing overhead, selling expense, oradministrative expense.6. The salary of the supervisor of the people who assembled the product7. Wages of the product tester who stands in a shower to make sure the umbrellas do not leak8. Cost of market research survey9. Salary of the company’s sales managers10. Depreciation of administrative office buildingB. Essay. Answer below questions as required.1. Identify the three elements of cost incurred in manufacturing a product and indicate thedistinguishing characteristics of each. 2. What is the general content of a statement of cost of goods manufactured? 3. What is the relationship of the cost of goods manufactured to the income statement? 4. How did you cope up with your studies in this “new normal”…
- The following is a list of costs that were incurred in the production and sale of lawn mowers:a. Premiums on insurance policy for factory buildingsb. Tires for lawn mowersc. Filter for spray gun used to paint the lawn mowersd. Paint used to coat the lawn mowers, the cost of which is immaterial to the cost of the final producte. Plastic for outside housing of lawn mowersf. Salary of factory supervisorg. Hourly wages of operators of robotic machinery used in productionh. Engine oil used in mower engines prior to shipmenti. Salary of vice president of marketingj. Property taxes on the factory building and equipmentk. Cost of advertising in a national magazinel. Gasoline engines installed in the lawn mowersm. Electricity used to run the robotic machineryn. Straight-line depreciation on the robotic machinery used to manufacture the lawn mowerso. Salary of quality control supervisor who inspects each lawn mower before it is shippedp. Attorney fees for drafting a new lease for headquarters…For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given. Clear All Product Period Tires for the bicycles Electricity costs to run the factory Selling costs for the period Delivery costs to take the bicycles to stores Accountant salariesIdentify which of the following transactions andevents are product costs and which are period costs:• Office fire insurance.• Cost of electric power.• Rental charges of warehouses.• Costs of basic raw materials used in production.• Depreciation of electrical equipment in the plant.• Depreciation of the furniture in the office.• Sales incentives paid to the sales personnel.• Inspection costs of raw materials.• Direct overhead costs.• Costs of packing materials.• Overtime premiums.
- Cartwell Incorporated makes picture frames that are sold in a local retail store and through various websites. Wood for frames Rent for retail store Depreciation on office equipment Assembly worker wages CEO's salary Glue and nails Online sales commissions Glass for frames Depreciation on factory equipment Factory utilities Stain for frames Required: 1. Determine the cost of direct material. 2. Determine the cost of direct labor. 3. Determine the cost of manufacturing overhead. 4. Determine the total manufacturing cost. 5. Determine the total period cost. 6. Determine the total variable cost. 7. Determine the total fixed cost. 8. Determine the total prime cost. 9. Determine the total conversion cost. 1. Direct materials cost 2. Direct labor cost 3. Manufacturing overhead cost 4. Total manufacturing cost 5. Total period cost 6. Total variable cost 7. Total fixed cost 8. Total prime cost 9. Total conversion cost $ $ $ $ $ $ $ $ 18,050 x 2,250 1,800 X 22,100 9,500 × 22,450 X 6,450 20,300…Pocket Umbrella, Inc. is considering producing a new type of umbrella. This new pocket-sized umbrella would fit into a coat pocket or purse. Classify the following costs of this new product as direct materials, direct labor, manufacturing overhead, or selling and administrative. Cost of advertising the product Fabric used to make the umbrellas Maintenance of cutting machines used to cut the umbrella fabric so it will fit the umbrella frame Wages of workers who assemble the product Presidents salary The salary of the supervisor of the people who assemble the product Wages of the product tester who stands in a shower to make sure the umbrellas do not leak Cost of market research survey Salary of the companys sales managers Depreciation of administrative office buildingClassify the following costs of this new product as direct materials, direct labor, manufacturing overhead, selling, or administrative 1. President's salary. 2. Packages used to hold the skin wipes. 3. Cleaning materials used to clean the skin wipe packages. 4. Wages of workers who package the product. 5. Cost of advertising the product. 6. The salary of the supervisor of the workers who package the product. 7. Cost accountant's salary (the accountant works in the factory). 8. Cost of a market research survey. 9. Sales commissions paid as a percent of sales. 10. Depreciation of administrative office building. Problem B Classify the costs listed in the previous problem as either product costs or period costs.
