capital and revenue expenditure presentation

Cartage and Freight − If those are incurred to bring Fixed Assets. endstream endobj 1933 0 obj <>/Metadata 256 0 R/Pages 1930 0 R/StructTreeRoot 303 0 R/Type/Catalog/ViewerPreferences 1940 0 R>> endobj 1934 0 obj <>/MediaBox[0 0 595.32 841.92]/Parent 1930 0 R/Resources<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/Tabs/S/Type/Page>> endobj 1935 0 obj <>stream Deferred Revenue expenditure 7. Duration: Revenue expenditure is made during the short-term. Receipts and invoices keep the records of expenditures. When an accountant consider revenue expenditure as capital expenditure, it will overstate the profit of the company and non-identifiable fixed assets will arise. You can use this creatively designed set to explain how capital expenses differ from operating … 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. The benefits of revenue expenditures usually expire within one financial year and their budget is smaller as compared to capital expenditures. SlideTeam added 396 new products and 5544 new slides in the past 24 hours. The revenues and expenditures of municipalities determine their ability to deliver services. After completing this chapter, you should be able to : 1. Other transactions are of capital nature. Capital Expenditure and Revenue Expenditure both are important for business for earning a profit in the present as well as in subsequent years. Finance professionals can use this entirely editable deck to discuss how CapEx enhances the scope of operations for the business and generates revenue for many years by boosting operational efficiency. 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… ��S��(r�T��7Q�E'. A D V E R T I S E M E N T. 4 Comments on . <>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S>> Created: Jan 5, 2011. ppt, 122 KB. Revenue expenditure 3. Expenditure means spending on something. J�� '(�6r��vڈ6�hrB�@ XXY�X��Nq��7;� }M�Ci�!9>��29B�k��!�Me��j鱘..�K��V�|��fO��ۓ�F��j��kwZ�;m� ��&K Revenue Expenditure: Capital Expenditure: Definition: The expenses a firm incurs each day to maintain its daily business activities are revenue expenditure. 3 Capital and Revenue.pptx from FINANCIAL ACCT6003 at Parul Institute of Engineering and Technology. 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. Ramamohan . 2. What is a capital expenditure versus a revenue expenditure? Loading... Save for later. Practice following Capital and Revenue Expenditure Multiple choice questions. Read more. Preview and details Files included (1) ppt, 122 KB. It’s not enough to say that capital expenditures are everything that revenue expenditures aren’t. This can be a payment is cash or can also be the exchange of some valuable item in exchange for goods or services. Free. Again, sometimes accountants may show revenue expenses as capital expenses for overstating the profit and getting incentives. Capital expenditure • Buy fixed assets or • Add to the value of an existing fixed asset. About this resource. 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. Revenue Expenditure Treated as Capital Expenditure. Info. In the case of a capital expenditure an asset has been purchased by the company which generates revenue for upcoming years. 0 x��Z[o�~7��bd�"))(ě�H��胷㙱��z�hf��)�I봏�a["y��E�7�_}��B�~��F��s#n�./r��ryq��?�͏��*p0�UVV��n//��ؿy�5��xR��J�:��GZ��J(T!�2� R,��d_��JmdE��4։W��n�-�b�-��VdŢ#K�4C^��ei�r��(/f�Rc��N�x�g��2�HU��qF�fK��ff��Ç� �X,�w�R/>>S��^(�_�U�r�j^�Q_�Z��{�w䯀�Q�AＦ��ْ��'��=�w��v�ϖ�b�O-[j��ǆ*j\� �Fw܀zݠǞ�?��5-�U��j�8�X�x� 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. Search. The Concept of Capital and Revenue Expenditure: Expenses, losses, and incomes are also known as revenue items since they together will show up the net profit or revenue earned. <> Recurring or Regular expenditure. Weaknesses in revenue and expenditure management could constrain the ability of a municipality to contribute to poverty reduction and economic development. %%EOF You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. 3) Recorded in balance sheet Recording in Manufacturing, Trading or Profit and Loss A/c Capital expenditure 5. Thank you . Capital and Revenue Expenditure and Receipts. Capital Expenditure found in: Capital Expenditure Details Ppt Show, Capital Expenditure Details Ppt Outline, Capital Expenditure Details Ppt Topics, BMW Group Capital Expenditure 2014-18, Capital Expenditure Powerpoint.. Toggle Nav. Capital and Revenue expenditure. If you continue browsing the site, you agree to the use of cookies on this website. Activity slide could be used as a Plenary!!! This is so because repair and maintenance costs do not increase the earning capacity of the machine but only maintains it (i.e. Nice. 5. endobj Capital expenditure 8. -- Created using PowToon -- Free sign up at http://www.powtoon.com/youtube/ -- Create animated videos and animated presentations for free. Capital expenditures (CAPEX) are … %�� One must be clear in one’s mind regarding the nature of an item of expenditure. Plus, capital expenditures will show up differently on your reporting metrics. 1946 0 obj <>stream Definition of Capital Expenditure. Capital expenditure constitutes those expenses that are typically incurred while acquiring capital assets or upgrading the current ones. These are recurring in nature and are allocated to the profit and loss account of the same year. hެTMO1�+>��-�H��J�*�JU��7��l�]��w�� *ꡇj��7�q��k��ft�k(f�A��U Reply. On the other hand, when capital expenditure … a quick aid to distinguish between capital and revenue expenditure, simple activity included. Capital expenditures are usually one off and they include the substantial investments of money or capital that a government makes for the purpose of expansion in various sectors and different business in order to generate profits. Remember Multiple choice questions are having good weightage in the total marks of … Capital and Revenue expenditure. Capital Income and Expenditure, Revenue Income and Expenditure and Deferred Revenue Expensiture �a�� /�a''|�|�g�{�"�_�e�� Capital receipt 4. They are either expensed in the income statement (revenue expenditures) or capitalized as fixed assets in the balance sheet (capital expenditures). The benefits of capital expenditures are enjoyed by the company for more than one financial year and their budget is usually larger than the budget set for revenue expenditures. Capital Expenditures Team 6 Managerial Accounting Nov. 2, 2006 Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Deferred Revenue expenditure . capital and revenue 1.1 topic 1. capital and revenue expenditures and receipts Notifications 5. I think it is better to go through this MCQ’s. endobj 3 0 obj ;�=��l�q�ni��9��U�Z9� S�� ]�X9��7[�>��lʯ b�6�W�j��eQ�',jp�:`w��7�1��C?�0��{zp�0��W�P��T�)�t��Q��4j��FC��LO�Q�� صk^�� v��~nf?_��?�й�Y'U�O��7� �3v*�ZWc��y�$)�4 ��|�r> �5�G��u2b��BArC٪m��sU��O��V�WX�p|G�g��]� upgrading/maintaining the long-term assets with our Capital Expenditure (CapEx) PowerPoint template. Search. <> endobj business expense that is made to acquire an asset or to improve the capacity of an asset Distinguish between capital and revenue expenditure 2. %PDF-1.7 %�� 3. Ik$lu1�h6 ��\�� $�+�"(/�a��3�+�B��+�Һ��{��B ��-[W�u��+LM�NDS�_iQ�ODÇ��ݓ�D�Π1� ;�n�8��(g?`�h��@s`��?s�}� &�� Capital and revenue items. Capital Expenditure found in: Capital Expenditure Details Ppt PowerPoint Presentation Infographics Guide, Capital Expenditure Details Fy 18 Ppt PowerPoint Presentation Summary Themes, Capital Expenditure Valuation Methods Ppt.. Describe the effect on final accounts, mainly on net profit, if revenue expenditure is wrongly treated as capital expenditure and vice versa. h�bbd``b`�$W�+w�`� ߶201�KY��\~ �G� Hendriksen opines, "expenses are the using or consuming of goods and services in the process of obtaining revenues". ��~�{h�-�o��r�� B��j6�]��o�6tLy��T�B��ϰ�g�%S��=��9�de`�$0Q�y�@U�ъ�$6� �2H��"��j� �~��(RQd��'��wfZ��*O��(KK�7m��q߅78�u��31��)t|�0��o��O_ӗ�R��_d�"3�"s͸�}b^X޼loڇ�Ȍ�|�g��>&0��XdGJ 1 0 obj It can be categorised as capital expenditure or revenue expenditure. Revenue expenditure refers to expenses incurred in the day to day running of the business. Before we explore this part of accounting study material at Accounting-Daddy.com, let’s examine what Cambridge wants us to learn under this title at secondary education level: Capital and Revenue Income and Expenditure - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. %PDF-1.5 Distinguishing between capital and revenue expenditure Author(s): Mark POOLE Materials from this session: insert_chart Capital and Revenue Expenditure. 2 0 obj Most of the accountants often confuse regarding capital and revenue expenditure, particular who come from non-accounting back ground. Syed alfaz . Reply. 1932 0 obj <> endobj <> hތR;KA��O%h�$�� 4 0 obj Search Skip to Content. They break down differently, depending on the size of the payment and the time across which it needs to be paid for. 1938 0 obj <>/Filter/FlateDecode/ID[<42AEEECF1D2AB244B013BE42CDAE9F5A><5CD56B4593AD8B4396DB3781BEA8EC08>]/Index[1932 15]/Info 1931 0 R/Length 52/Prev 1058069/Root 1933 0 R/Size 1947/Type/XRef/W[1 2 1]>>stream Multiple choice questions (MCQs) Chhavi sharma . Capital expenditures vs. revenue expenditures. Back to: Capital and revenue items (quizzes) Show your love for us by sharing our contents. View Chapter no. Business expenditures are accounted for in either one of the two ways. Usually the cost is recorded in a balance sheet account that is reported under the heading of Property, Plant and Equipment. The benefit of the revenue expenditures is received in the same accounting year itself. 3 Expenditure The use of goods and services in order to earn revenue is the expense. Difference between Revenue Expenditure and Capital Expenditure. Report a problem. If you are new to accounting, the difference between capital expenditures and revenue expenditures can seem a bit confusing. Revenue expenditure is money being spend on items used on a regular basis such as buying stock to sell or paying staff payslips. It is the process of causing a liability by a commodity. They are also likely to reflect the existence of other governance challenges. On the other hand, no asset is acquired as such in the case of a Revenue Expenditure. endstream endobj startxref Welcome to “Capital and Revenue Expenditure and Receipts” topic. �#r�!��'��}�μte�W��h��=��'��| stream These expenditures are generally for the purchase of fixed assets or assets with a long life. Revenue expenditure • Day-to-day running of business. It refers to the distinction of capital from revenue expenditure for tax purposes. Unlike capital expenditures, these are not carried forward to future years. ‘Capital v Revenue expenditure’ is a term used throughout this toolkit. O�Z#/�lN�#�#��P��1+�FR��١q��w۠/)GZ!��!s��mUʢ��&��tu��Q4�r0K�A��,��#�aB�qB�-��B*}�? Both have its own merits and demerits. Capital expenditure 6. Capital expenditure is when fixed assets are bought into the company, these are called capital items. ��vdZe#��ۣ��cJ� �.��)�\�sঔ4B�)t��鷰!��c(.��"��6T��)>}��2��Eea3��F/h�')�s��PS�Q� .Zk��.b��. 7 Capital Expenditure and Revenue Expenditure Reference: Chapter 20 (p.221) 21 (p. 258) A Reasons to distinguish ... – A free PowerPoint PPT presentation (displayed as a Flash slide show) on PowerShow.com - id: 6c2a9d-MGE0M The differences between capital expenditures and revenue expenditures include whether the purchases will be used over the long-term or short-term. Please click here to … Capital & Revenue expendituRe. UNIT 1 CHAPTER 3 CAPITAL AND REVENUE EXPENDITURE CAPITAL EXPENDITURE: CAPITAL 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.