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Accounting For Managers - Revenue Recognition

Revenue Recognition, Capital and Revenue Expenditure and Receipts - Introduction

   Posted On :  26.01.2018 06:25 am

In the previous lessons pertaining to the preparation of profit and loss account, the reader would have had an exposure to the concepts relating to expenses, expenditure and incomes.

The term expenditure is a broad term and it is classified into capital expenditure, revenue expenditure and deferred revenue expenditure. All incomes are not receipts and all receipts are not incomes. For example, under accrual or mercantile system of accounting even income earned but not received is treated as income. Similarly all receipts are not recognised as incomes. This lesson deals with the classification of capital and revenue expenditure and receipts.Learning Objectives

  

After reading this lesson the reader should be able to:

  

ՖՖ   Understand capital expenditure

 

ՖՖ   Distinguish capital expenditure from revenue expenditure

 

ՖՖ   Identify capital receipts and revenue receipts

 

 Contents

 

Capital Expenditure

 

Revenue Expenditure

 

Distinction Between Capital And Revenue Expenditure

 

Deferred Revenue Expenditure

 

Capital And Revenue Profits, Receipts And Losses

 

Illustrations

Tags : Accounting For Managers - Revenue Recognition
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