Why is it necessary to make a distinction between Capital and Revenue Receipts and Capital and Revenue Expenditure in Accountancy?

Q: what are the Processes and/or technologies which are or could be incorporated in the expenditure and…

A: Both Revenue and Expenditure cycles are the key components in controlling the cash flows of an…

Q: How does accrued but uncollected revenue affect the balance sheet?

A:

Q: Under IFRS regarding Financial Assets, which of the following is true?

A: a) If we hold debt until it matures and only to get cash flow from it, we can measure the debt at…

Q: What do you mean by Assets, Liabilities, Capital, Revenues and Expenses?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Define the concept of Financial Assets

A: Definition:- Generally Financial assets are not in physical nature assets. Which are liquid assets…

Q: In what ways does revenue recognition differ from other financial accounting procedures?

A: Definition: Every corporate entity should record revenues when they are generated, regardless of…

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 agency promblem in financial terms?

A: Agency problem is the conflict arises in the interest inherent in any relationship, in which one…

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 assets are viewed as current financial resources?

A:

Q: How to determine the timing and measurement of revenue.

A: Revenue recognition principle is the principle that determines when and how much amount should be…

Q: What is the relationship between Income Measurement and Asset Valua

A: Profit or loss calculation is a simplified method of calculating income. An accountant defines…

Q: Discuss the fundamental concepts related to revenue recognition and measurement.

A: Revenue Recognition: Revenue recognition is a Generally accepted accounting principle that tells…

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: How to calculate revenue?

A: Money earned by selling products produced or purchased is called sales revenue. Ideally revenue is…

Q: Explain why firms must correctly classify expenditures incurred as either capital expenditure or…

A: Capital expenditure is something which has been incurred on something that will provide benefits for…

Q: What is the criteria to recognize revenue?

A: Introduction: Taxes, customs charges, earnings from state-owned firms, capital revenues, and foreign…

Q: i) calculates the capital expenditure and revenue expenditure that adliana incurred ii)explain why…

A: Capital expenditures are typically one-time large purchases of fixed assets that will be used for…

Q: Discuss, using practical example how revenue expenditure should not be capitalized?

A: SOLUTION- Thus, a revenue expenditure which increases the utility or productive capacity of an…

Q: Describe the Fundamental Issues Related to Recognizing Revenue.

A: Revenue Recognition: Revenue recognition refers to the principle which tells about the conditions…

Q: Is Capital debit or credit?

A: As per Business Entity concept Business is treated as an entity which is different from Proprietor.…

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: Why Revenue is recognized when performance obligations are satisfied, not necessarily when cash is…

A: Revenue recognition principle: Revenue recognition principle states that every business organization…

Q: 3. Explain why firms must correctly classify expenditures incurred as either capital expenditure or…

A: There is two type of Transaction  1. Revenue Nature  2. Capital Nature.

Q: Understand the fundamental concepts related to revenue recognition and measurement.

A: Revenue Recognition: Revenue recognition is a Generally accepted accounting principle that tells…

Q: Briefly explain the relationship between assets, liabilities, and revenue.

A: Assets is the tangible or Intangible factor in the business, which can be valued in terms of money…

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: Why do expenditure accounts have debit balances if assets are valued resources and asset accounts…

A: The Answer

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: Why isn’t accounting net income used in the net present value method of making capitalbudgeting…

A:

Q: What is Revenue Recognition?

A: The income statement is the one of the financial statements of the business.

Q: lationship between Income Measurement and Asset Valuation

A: Profit or loss calculation is a simplified form of income measurement. Income is defined by an…

Q: Classify Revenue or capital expenditure?

A: Introduction: Revenue Expenditure: Its a Recurring expenditure. Expenditure spent with in 12 months…

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: How are the balance sheet and income statement affected by fair value accounting?

A:

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: Differentiate between net income and net cash flow?

A: Net Income is the difference between revenue and expenses recognized in an accounting period.Net…

Q: Define the term financial assets.

A: Financial Assets: Financial assets are referred to as assets that occur from contractual agreements…

Q: Service revenue belongs on which financial statement?

A: Service revenue is in the nature of Revenues account. Therefore, the Balance of Service revenues…

Q: Why must financial analysis be related to a specific objective?

A: Financial Analysis: The use of a business entity's financial statements in order to assess its…