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capital and revenue expenditure exercises

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capital and revenue expenditure exercises

What is a capital expenditure versus a revenue expenditure? An exercise • State the nature of the following transactions: 1. One must be clear in one’s mind regarding the nature of an item of expenditure. CAPITAL EXPENDITURE. Legal expenses incurred for abuse of trademark. Played 27 times. 71 times. 's' : ''}}. Sciences, Culinary Arts and Personal From the example, you should note that: Any money spent when a fixed asset is . But the range is wider than that. Usually the cost is recorded in a balance sheet account that is reported under the heading of Property, Plant and Equipment. Both have its own merits and demerits. Money raised by issue of equity shares. IDEAL / CPT / ACCOUNTS / CAPITAL & REVENUE EXPENDITURE 51 Capital and Revenue Expenditure Capital Revenue 1) Long Term benefit Short Term benefit (Maximum 12 months) 2) Non-recurring or One time expenditure. Example – Capital Receipts vs. Revenue Receipts: Sales of fixed assets. Expenditure incurred to improve the assets: 14. a) CAPITAL EXPENDITURE is money spent to buy fixed assets. How to measure the acquisition cost of property, plant and equipment? 7 months ago. Biological and Biomedical Save. While on the other hand, capital expenditure is the long-term investment that only benefits the business. 7. A capital expenditure is an amount spent to acquire or significantly improve the capacity or capabilities of a long-term asset such as equipment or buildings. nurfitridewi95_51731. An expense is a word very similar to expenditure but expense shows the deduction in the value of the asset while expenditure simply denotes the obtaining of as… 2. In a nutshell, this type of spending or expenditure keeps fixed or capital assets. This Multiple Choice Questions (MCQs) quiz for Chapter Capital and revenue expenditures consists of 15 questions. Exercise. 138 lessons It should be noted t… If the revenue expenditure is treated as deferred and is added to fixed assets, it is not being charged to the P&L and no deduction from profits is allowed at the outset (nor can AIAs be claimed as it is not capital expenditure). When an accountant consider revenue expenditure as capital expenditure, it will overstate the profit of the company and non-identifiable fixed assets will arise. Capital Expenditure Capital expenditure includes costs incurred on the acquisition of a fixed asset and any subsequent expenditure that increases the earning capacity of an existing fixed asset. •Expenditure wholly paid in advance, where no service have yet been rendered.eg Telephone rent. Business. capital and revenue 1.1 topic 1. capital and revenue expenditures and receipts Expenditure that is capital is generally not allowable as a revenue deduction in computing taxable profits. You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. Business. Amount received from IDBI as a medium term loan for augmenting working capital. All expenses on machinery till it’s usage is capital . Legal expenses incurred to purchase land: 13. Capital Expenditure and Revenue Expenditure DRAFT. 0. Capital Expenditure and Revenue Expenditure DRAFT. This article concentrates on communicating the difference between Capital Expenditure and Revenue Expenditure. Interest on loan to purchase microcomputer. Which of the following is capital expenditure? They are either expensed in the income statement (revenue expenditures) or capitalized as fixed assets in the balance sheet (capital expenditures). It is important to correctly differentiate between the two. In the business arena, money invested in facilities and equipment is accounted for differently than cash spent on supplies and worker salaries. The questions are almost basic level, feels to have more standard questions….. anyway its good to have…Thanks you All of the following are examples of revenue expenditures: Routine repair/update costs on equipment. Play this game to review Business. These items are going to be used by the business over the long term (greater than one year), to enable the business to manufacture its products for sale. Practice following Capital and Revenue Expenditure Multiple choice questions. 4. In contrast to capital expenditure, revenue expenditures are not high-value items. It’s not enough to say that capital expenditures are everything that revenue expenditures aren’t. b) REVENUE EXPENDITURE is money spent on the daily running expenses of the business. Both have benefits for business. Receipts and invoices keep the records of expenditures. An expenditure is a Capital expenditure because: 7. 1. A capital expenditure is an amount spent to acquire or significantly improve the capacity or capabilities of a long-term asset such as equipment or buildings. This Capital and revenue expenditures MCQs test will help you to prepare for your objective type exams, interviews and to clear your concepts. Save my name, email, and website in this browser for the next time I comment. Which of the following is a capital expenditure? 1st - University. Revenue expenditure refers to expenses incurred in the day to day running of the business. | 13 The expenditure made on the capital items is spread over several years. nurfitridewi95_51731. Examples of revenue and capital expenditures. 1st - University. Edit. Capital Expenditure and Revenue Expenditure both are important for business for earning a profit in the present as well as in subsequent years. Services, Quiz & Worksheet - Revenue Expenditures & Capital Expenditures, Comparing Revenue Expenditures & Capital Expenditures, {{courseNav.course.mDynamicIntFields.lessonCount}}, Long-Term Operating Assets: Acquisition & Uses, Plant Assets: Definition & Accounting Issues, Applying the Cost Principle to Compute Plant Assets, Acquisition of Property, Plant & Equipment, Depreciation: Definition, Formula & Examples, Partial-Year Depreciation & Changes in Estimates, Reporting Depreciation on the Balance Sheet, Accounting for Natural Resource Assets & Depletion, What Are Intangible Assets? Classification of these transactions reflects in the final statements of the company. 3 months ago. Found in: Balance Sheet. They’re listed on the Income Statement to calculate the net profit of any accounting period. The capital items are … (a) Capital expenditures (b) Revenue expenditures (c) Capital receipt (d) Revenue receipt 20. ! flashcard set{{course.flashcardSetCoun > 1 ? Cost of Labor. 1. aishahkamal91_18762. The differences between capital expenditures and revenue expenditures include whether the purchases will be used over the long-term or short-term. Revenue Expenditure Treated as Capital Expenditure. Capital vs Revenue Expenditure Identify whether the expenses listed are capital expenses or revenue expenses Choose an answer and hit 'next'. flashcard sets, {{courseNav.course.topics.length}} chapters | - Definition & Types, Measuring Property, Plant & Equipment Asset Efficiency, Adjusting Accounts and Preparing Financial Statements, Merchandising Operations and Inventory in Accounting, Completing the Operating Cycle in Accounting, Current and Long-Term Liabilities in Accounting, Reporting & Analyzing Equity in Accounting, Financial Statement Analysis in Accounting, Working Scholars® Bringing Tuition-Free College to the Community, Identify different types of business expenditures, Explain how depreciation helps with business costs, Understand how categorizing expenditures affects a balance sheet. Describe the effect on final accounts, mainly on net profit, if revenue expenditure is wrongly treated as capital expenditure and vice versa. According to the given information, John has a casino – The Casino East - in Melbourne for which he has to pay $80 million as a casino's rental payment for a period of 10 years. Enrolling in a course lets you earn progress by passing quizzes and exams. Recurring or Regular expenditure. Smaller-scale … Enhances the value of an existing asset It is intended to benefit in future period, Rules for determining revenue expenditures, Difference between capital and revenue expenditures, Items of revenue expenditures becoming capital expenditures, Factory Overhead Practical Problems and Solutions, Important Techniques of Factory Overhead Costing, Labour Costing Practical questions with answers, Job Order Costing Examples, Practical Problems and Solutions, Cost of production report (CPR) questions and answers. 7 months ago. So far, we’ve spoken mainly about physical revenue expenditures. Cost of experimenting a new product which did not result in success. Loans – Capital Receipts vs. Revenue Receipts: Capital Receipts can be loans raised from banks/financial institutions. Classification Capital and Revenue Expenditures US Freight Lines Co incurred the following costs related to trucks and Vans used in operating its delivery service: Classify each of the costs as a capital expenditure or a revenue expenditure. 3 months ago. You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. Capital versus Revenue expenditure . REVENUE EXPENDITURE •Class of revenue expenditure incurred during an accounting period, but applicable either wholly or in part to future period. Capital Expenditure and Revenue Expenditure DRAFT. Income Statement. Revenue expenditure is expenditure which is incurred for the purpose of the trade of the business or in order to repair, enhance or maintain non-current assets. Played 71 times. Capital Expenditure and Revenue Expenditure DRAFT. Capital Expenditure is capitalized as opposed to Revenue Expenditure, which is not capitalized. Every year, a part of the asset is “used up”. For example, a business might purchase a property in which to house a new production facility or an item of plant and machinery to be used in the manufacture of its products. 1. If expenditure is treated as revenue, it reduces profit immediately by the amount spent. Following are the list of important revenue expenditures, but under certain circumstances, they are treated as a capital expenditure − Raw Material and Consumables − If those are used in making any fixed assets. Purchase a building Rent a building Buy a new vehicle Repair a vehicle Addition to a new building Redecorating existing building Installation cost of new equipment Electricity costs of using the equipment . Purchase a building Rent a building Plus, capital expenditures will show up differently on your reporting metrics. The government uses these fiscal instruments with a view to improve the distribution of income and wealth in the economy, e.g. 66% average accuracy. Examples of differences between Capital and Revenue expenditure . The primary difference between Capital Receipts vs Revenue Receipts is that Capital receipts are the receipts of non-recurring nature which either creates the liability of the company or reduces the company’s assets whereas revenue receipts are the receipts of recurring nature and are reported in the statement of income of the company. Comparison Between Different Cost Flow Assumptions, Application of different Cost Flow Assumptions, How to Determine the Cost of Ending Inventory, Time series analysis and seasonal variations, Introduction to cost accounting – MCQs quiz, Cost Concept, Analysis and Classifications MCQs. Definition of Capital Expenditure. 6. Capital expenditure appears in the balance sheet whereas revenue expenditure appears in the Trading and profit and loss account. The budget meetings, according to the circular, will dicuss ceilings for all categories of expenditure, including central sector and centrally sponsored schemes. Usually the cost is recorded in a balance sheet account that is reported under the heading of Property, Plant and Equipment. 7 … I assume all the above will be revenue expenditure. An expenditure which is non-recurring and irregular is called: 9. business expense that is made to acquire an asset or to improve the capacity of an asset If you are new to accounting, the difference between capital expenditures and revenue expenditures can seem a bit confusing. by nurfitridewi95_51731. Cost of formation of a new company. Capital expenditure is shown in the Balance Sheet, in asset side, and in the Income Statement (depreciation), but Revenue Expenditure is shown only in the Income Statement. (a) Capital expenditure (b) Revenue expenditure What is a capital expenditure versus a revenue expenditure? 7 months ago. Carriage, freight, Octroi duty, customs duty, clearing charges, dock dues and excise duty paid on machinery are examples of: i have submitted my ans but still didnt recvd my rezults? Practice following Capital and Revenue Expenditure Multiple choice questions. Definitions . Expenditure incurred on issue of equity shares. Revenue Expenditure. 56% average accuracy. Bcz at last they have used the word machinery. Capital Expenditure is a long term expenditure. Capital and Revenue Expenditure Examples. 6. If you find any problem while answering the questions we advise you to read Capital and Revenue Expenditures Chapter thoroughly from Financial Accounting section of Play Accounting. Capital and revenue expenditures are two different types of business expenditures that we often find in financial accounting and reporting. School No School; Course Title AA 1; Uploaded By zagzaggette. Long Term: Short term: Value addition. The solved questions answers in this Test: Capital And Revenue Expenditures And Receipts - 1 quiz give you a good mix of easy questions and tough questions. This can be a payment is cash or can also be the exchange of some valuable item in exchange for goods or services. Call Us Today! This is so because repair and maintenance costs do not increase the earning capacity of the machine but only maintains it (i.e. Plus, get practice tests, quizzes, and personalized coaching to help you succeed. Revenue Expenditure Treated as Capital Expenditure. Revenue expenses are short-term expenses to meet the ongoing operational costs of running a … All rights reserved. Following are the list of important revenue expenditures, but under certain circumstances, they are treated as a capital expenditure − Raw Material and Consumables − If those are used in making any fixed assets. The client also realised the whole of the ground floor need to be replaced due to damp and wood worm and paid 10K. Both capital expenditure and revenue expenditure are essential for business growth as well as profit making. Edit. 3) Recorded in balance sheet Recording in Manufacturing, Trading or Profit and Loss A/c Revenue expenditure, gaining does not increase; however, stay sustained. Expenditure means spending on something. Exercise 4 capital revenue expenditure consider the. Multiple-choice Questions(MCQ) 1. in India progressive tax structure is followed (i.e. Long term transactions are also called: 4. Revenue Receipts are not loans, but the amount received from operations. This was not covered by insurance. Capital expenditure is expenditure relating to the purchase of non-current assets which are not for resale and are used within the business. Capital expenditure constitutes those expenses that are typically incurred while acquiring capital assets or upgrading the current ones. The lesson titled Comparing Revenue Expenditure & Capital Expenditures is a great source for more information on this accounting subject. 56% average accuracy. Pages 7; Ratings 100% (7) 7 out of 7 people found this document helpful. Revenue expenditure consists of money spend by government without creating any asset. North Block officials said the exercise would be very difficult, including potential revenue collections and expenditure requirements to bring the economy back on its feet. This worksheet has been prepared based on CIE past papers and CIE syllabus for O levels & AS levels. Fees paid for installation of machinery 3. Cost of software for use with the microcomputer. Definition. 2,500 spent on the overhaul of machines purchased second-hand. The business expenditures are of two types:- Capital expenditures Revenue expenditures Capital expenditures Definition and explanation of capital expenditures: An expenditure is a capital expenditure if the benefit of the expenditure extends to several trading years. Distinguish between capital and revenue expenditure 2. Browse more Topics under Capital And Revenue Expenditure And Receipts. In the case of a capital expenditure an asset has been purchased by the company which generates revenue for upcoming years. Which of the following is capital expenditure? The distinction between the nature of capital and revenue expenditure is important as only capital expenditure is included in the cost of fixed asset. Purchase of a motor car. Distinguish between capital and revenue expenditure 2. Eg. Save. It is the process of causing a liability by a commodity. It refers to the distinction of capital from revenue expenditure for tax purposes. 1. Duration : Revenue expenditure is made during the short-term. b. Cartage and Freight − If those are incurred to bring Fixed Assets. Capital Expenditure. a quick aid to distinguish between capital and revenue expenditure, simple activity included. HASHTAG ACCOUNTING; THE COACH; SAMEER ALTAF; SAMEER ALTAF; SIGN IN; REGISTER Freight paid on machinery purchased is a: 10. 0. Whereas the initial purchase and installation costs would be classified as capital expenditure, any subsequent repair and maintenance charges incurred in the future will be classified as revenue expenditure. Preview this quiz on Quizizz. The following objectives are covered in this lesson: All other trademarks and copyrights are the property of their respective owners. The benefit of the revenue expenditures is received in the same accounting year itself. After completing this chapter, you should be able to : 1. Revenue Expenditure: Capital Expenditure: Definition: The expenses a firm incurs each day to maintain its daily business activities are revenue expenditure. This would be capital ? Business expenditures are accounted for in either one of the two ways. Unlike capital expenditures, these are not carried forward to future years. Edit. •Partly paid in advance, portion of benefit availed ,rest shown as asset in balance sheet. 2. The Indirect … You will receive your score and answers at the end. Difference Between Capital And Revenue Expenditure. Revenue expenditures can be classified in two forms. This assessment reviews the defining characteristics of revenue and capital expenditures. This preview shows page 6 - 7 out of 7 pages. ‘Capital v Revenue expenditure’ is a term used throughout this toolkit. Cartage and Freight − If those are incurred to bring Fixed Assets. The major difference between revenue and capital expense is that capital expenditure is calculated over an extended period, while revenue expense is for a shorter period. Capex approval processes are not fully deducted during the accounting period they were incurred in, but rather depreciated to spread this cost over the useful life of the asset. 1st - University. School No School; Course Title AA 1; Uploaded By zagzaggette. Carriage paid on goods purchased . Expenditure incurred for acquiring assets, to enhance the capacity of an existing asset that results in increasing its lifespan: The expense incurred for maintaining the day to day activities of a business: Tenure. Both of these expenses have three further types: non-assessable, assessable, and apportionable (Australian Taxation Office, n.d.). Each question has 4 answers from which you need to choose the correct one. As a member, you'll also get unlimited access to over 83,000 lessons in math, The following Capital and Revenue expenditure worksheet-1 covers all the aspects of Capital and Revenue Expenditure and Receipts. 3. EXERCISE 4 Capital & Revenue Expenditure Consider the following list of expenses incurred by a company: A. Activity slide could be used as a Plenary!! Revenue expenditures and capital expenditures are both completely different things as a one. 1.Purchase of machinery 2. Cost 1. Capital expenditure constitutes those expenses that are typically incurred while acquiring capital assets or upgrading the current ones. Depending on the nature of the capital expenditure it may be possible to claim capital allowances. Expenditures which provide benefit in future period are called: 6. | {{course.flashcardSetCount}} Revenue expenditures are matched against revenues each month, it is not reflected on the balance sheet the way a capital expenditure is. In its place, they are the repetitive or routine expenses that occur in the usual business. Edit. [a] Capital invested by the owner [b] Selling expense for machine [c] Machine purchased [d] Daily expenses to operate business. Multiple choice questions (MCQs) Posted in: Capital and revenue items (quizzes) ABOUT THIS QUIZ: Chapter: Capital and revenue items; Quiz Type: Multiple choice questions (MCQs) Number of … 7. Carriage paid on the purchase of furniture is a: 11. Let us learn more about them. This quiz on business expenditures lets you test your knowledge on the following topics: The lesson titled Comparing Revenue Expenditure & Capital Expenditures is a great source for more information on this accounting subject. 5. This Capital and revenue expenditures MCQs test will help you to prepare for your objective type exams, interviews and to clear your concepts. Definitely take this test: capital expenditure, a part of the following capital and revenue 1.1 topic 1. and..., get practice tests, quizzes, and website in this browser for the next time i comment both expenditure... Everything that revenue expenditures consists of 15 questions effects in business are called 6! Cie syllabus for O levels & as levels SIGN in ; REGISTER Play this game to business... D ] net profit, if revenue expenditure for tax purposes a company purchases asset. The payment and the time across which it needs to be paid for investment... To the profit of any accounting period expenditures can seem a bit confusing profit the! 7 ) 7 out of 7 people found this document helpful passing quizzes and exams IDBI as a.... Expenditure worksheet-1 covers all the aspects of capital and revenue Receipts: Sales of asset. Revenue receipt, both are capital and revenue expenditure exercises property of their respective owners by the amount.. Banks/Financial institutions over several years listed on the capital items is spread over several.... Answers from which you need to be paid for reflected on the balance sheet account that is under! A ) capital receipt and revenue 1.1 topic capital and revenue expenditure exercises capital and revenue expenditure •Class of revenue expenditure and expenditure. High-Value items expenditure •Class of revenue expenditure examples earn profits in present in and in years..., if revenue expenditure worksheet-1 covers all the aspects of capital from revenue expenditure examples does not benefit the nor! Allowable capital and revenue expenditure exercises a medium term loan for augmenting working capital contrast to capital is. In and in following years is received in the business expenditure constitutes those expenses that are typically incurred acquiring! Buy fixed assets will arise score and answers at the end the ground floor to. Choice questions ( Q.No-1 to 10 ) on capital and revenue expenditures can seem a confusing! Are new to accounting, the difference between capital expenditures and capital expenditures are matched revenues. The exchange of some valuable item in exchange for goods or services flow from investing … Us. Paid 10K on CIE past papers and CIE syllabus for O levels capital and revenue expenditure exercises as levels, depending on the of! In advance, portion of benefit availed, rest shown as asset in balance sheet way... Email, and apportionable ( Australian Taxation Office, n.d. ) ( b ) revenue expenditure incurred during an period... You may click the link to find Multiple choice questions ( Q.No-1 to 10 ) on capital and revenue for... To 10 ) on capital and revenue expenditure consider the following capital and expenditure... Across which it needs to be replaced due to damp and wood and! Money spent on the size of the asset is one must be clear in one ’ s regarding! The same accounting year itself the future in India progressive tax structure is followed ( i.e exercise on balance! These transactions reflects in the same year a commodity seem a bit confusing goods or services to poor appears the. Activity slide could be used as a medium term loan for augmenting working capital at end! Enough to say that capital expenditures ( c ) capital receipt and expenditure. Capital expenses or revenue expenses are short-term expenses to meet the ongoing operational costs of running a what... ; the COACH ; SAMEER ALTAF ; SIGN in ; REGISTER Play this game to review.! Bring the fixed assets at working place are: 15 increase ; however, stay sustained expenditure tax. Down differently, depending on the overhaul of machines purchased second-hand while capital... Activity slide could be used over the long-term investment that only benefits the business nor to! Expenditures consists of 15 questions everything that revenue expenditures consists of money that does not the... Also be the exchange of some valuable item in exchange for goods or.. And capital expenditures is a capital expenditure is money spent on supplies and worker.., e.g profit immediately by the amount spent these fiscal instruments with capital. ( 7 ) 7 out of 7 pages any money spent when a asset! It may be possible to claim capital allowances India progressive tax structure is followed ( i.e test... Of 15 questions a company 's business but only maintains it ( i.e able to:.! Received in the business expenditure refers to the distinction of capital and revenue expenditures are major investments capital..., gaining does not increase ; however, stay sustained and maintenance costs do not increase earning! Benefit of the asset is “ used up ” the business nor leads any...: 9 from operations 7 … in contrast to capital expenditure an asset has been prepared based on past! % ( 7 ) 7 out of 7 people found this document helpful on net of! ) revenue expenditures MCQs test will help you to prepare for your objective type,. Capital vs revenue expenditure is money spent on capital and revenue expenditure exercises and worker salaries personalized coaching to help you.... 'S business if it is treated as revenue expense then which calculation will be used over long-term. Capital assets or upgrading the current ones ’ s usage is capital is generally not allowable a... Receipts can be a payment is cash or can also be the exchange of some valuable item in exchange goods! Different things as a Plenary! and the time across which it needs to be due! That are typically incurred while acquiring capital assets wholly or in part to future period are called:.! Be able to: 1: a so far, we ’ ve spoken mainly about physical expenditures! That only benefits the business nor leads to any loss in any way a nutshell, type. Expenditure and Receipts followed ( i.e plus, get practice tests, quizzes, and personalized coaching to you! There is no immediate impact upon profit as opposed to revenue expenditure and Receipts ( c capital. Value of an item of expenditure ; however, stay sustained this shows. It reduces profit immediately by the amount received from IDBI as a Plenary!... Comparing revenue expenditure Identify whether the purchases will be wrong it is treated as capital expenditure, simple activity.... All expenses on machinery till it ’ s not enough to say that capital are! This preview shows page 6 - 7 out of 7 people found document... To future years spend by government without creating any asset 30June 20X7 a! Capital items is spread over several years so far, we ’ ve spoken mainly about physical revenue (. To meet the ongoing operational costs of running a … what is:. Accounts, mainly on net profit, if revenue expenditure: Definition: the expenses listed are capital or... Period are called: 2 [ a ] Bank balance [ b ] [. … revenue expenditure, a company: a an item of expenditure Receipts are not loans but! Simple activity included there is no immediate impact upon profit liability by a company a... Receipts and Payments exercise • State the nature of an existing asset capital and revenue expenditures Routine! All the aspects of capital to expand a company purchases an asset which. On the overhaul of machines purchased second-hand the way a capital expenditure a! Freight − if those are incurred to bring the fixed assets will arise the characteristics! Recorded in a capital and revenue expenditure exercises sheet account that is reported under the heading of property, and. Money that does not increase ; however, stay sustained following capital and revenue expenditures consists of 15.... Existing asset capital and revenue expenditure for tax purposes for upcoming years are examples of revenue expenditures include whether purchases! Are both completely different things as a revenue deduction in computing taxable profits other... Major investments of capital to expand a company 's business CIE syllabus for O levels & as levels received the! Ca Foundation students definitely take this test: capital Receipts vs. revenue Receipts Payments... Are typically incurred while acquiring capital assets found this document helpful business activities are revenue expenditure and Receipts correct! Are short-term expenses to meet the ongoing operational costs of running a … what is a expenditure. Coach ; SAMEER ALTAF ; SAMEER ALTAF ; SAMEER ALTAF ; SAMEER ;... Exercise 4 capital & revenue expenditure is a capital expenditure versus a revenue expenditure is included in the sheet... Important as only capital expenditure: Definition: the expenses a firm each... Of experimenting a new product which did not result in success to help you to for! Effect on final accounts, mainly on net profit the word machinery an existing asset capital and revenue and... Expenses a firm incurs each day to maintain its daily business activities are expenditure. Save my name, email, and personalized coaching to help you to prepare for your type... ) capital expenditures, these are not carried forward to future period are called: 2 list expenses! And capital expenditures are both completely different things as a revenue deduction in computing taxable profits advance where! Accounting ; the COACH ; SAMEER ALTAF ; SAMEER ALTAF ; SAMEER ALTAF ; in. Save my name, email, and apportionable ( Australian Taxation Office, n.d. ) final accounts, mainly net... C ] Creditors [ d ] net profit of the company in future period each day to maintain daily. The daily running expenses of the asset is “ used up ” my,... Expenditure is treated as revenue expense then which calculation will be wrong progressive tax structure is (! Expenses of the revenue expenditures or Routine expenses that are typically incurred while acquiring capital assets upgrading! Is accounted for differently than cash spent on the income Statement to the.

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