Revenue Flashcards
why do you need to understand the difference between revenue & capital expenditure and income?
as this will depends if the item is shown in the profit and loss, or statement of financial position
what does the statement of profit and loss show?
income and expenditure over an accountant period, showing a profit or loss
what does the statemtn os financial positon show?
shows assets and liabilities as the last day of accounting period
what is capital income?
income recieved from the sale of the capital assets of a business (car, property) // shown on profit and loss statement
what is captial expenditure?
this is incurred on the purchase for non-current assets, or alteration/improvements of non current assets
what is capital expenditure shown on?
statement of financial position
what is capital income shown on?
profit and loss statement
what is revenue income?
this is recieved from day to day business activities
exmaple of revenue income?
sales of services, sales of goods
what is revenue income shown on?
profit and loss statement
what is revenue expenditure?
incurred on the day to day running expenses of the business
example of revenue expenditure?
light, heating, staff, repairs, rent
what is revenue expenditure shown on?
statement of profit and loss.
RI, RE, CI, CE will be shown on what?
a trail balance
what do trail balances inlcude?
assets, income, liabilies, expenses
