fixed expenditure is what we will defiantly spend money on
Now, if a capital expenditure is treated as a revenue expenditure, then the expenses would be overstated and also the Fixed assets would be overstated
Fixed assets.
1) Revenue 2) Expenditure 3) Conversion 4) Fixed Assets
Capital expenditure are those type of expenditure the benefits of which are taken in more then one years by the business entity. So according to this all fixed assets are capital expenditures and fixed assets are shown at asset side of balance sheet.
Credit is neither an income or an expenditure. It becomes an expenditure when you use it. expenditure
Now, if a capital expenditure is treated as a revenue expenditure, then the expenses would be overstated and also the Fixed assets would be overstated
It is an expenditure in order to upgread or capitalize the fixed asset .this can be expressed either by extending the future expected life or by capitalizing the fixed asset cost.
Capital Expenditure.
Fixed assets.
Record the entire expenditure as a Fixed Asset. Then use the Fixed Asset Manager to amortize the expense.
No, petty cash is a control account not an expenditure account.
1) Revenue 2) Expenditure 3) Conversion 4) Fixed Assets
Beg. Net Fixed Assets - End. Net fixed Assets - Depreciation Expense= CAPEX
Capital expenditure are those type of expenditure the benefits of which are taken in more then one years by the business entity. So according to this all fixed assets are capital expenditures and fixed assets are shown at asset side of balance sheet.
The capital expenditure would appear on the balance sheet of a company. It is typically listed under the category of "Property, Plant, and Equipment" or "Fixed Assets."
Payment of wages is classified as a normal running cost of a business, so is stated under revenue expenditure. I got really confused with this one aswell. Anything that is paid regularly and is not a fixed asset or any costs associated with a fixed asset, is capital e.g machinery, improvement, legal fees, delivery. Therefore wages is revenue expenditure, hope this helps.
Expenditure is that amount which is paid in advance and benefit of which amount is need to be taken for more than one fiscal year like asset expenditureDebit fixed assetCredit cash / bank