introduction of Revenue Expenditure
Give a brief introduction of the term Revenue Expenditure?
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Revenue Expenditure is the expenses incurred in one accounting year and the Advantages from that are also enjoyed in the similar period only. This expenditure doesn’t raise the earning capability of the business but maintains the accessible earning capability of the business. It included all the expenses that are incurred throughout day to day running of business. The Advantages of this expenditure are for short period and are not forwarded to the subsequently year. This expenditure is on chronic nature.
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he following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depreciation (1,800,000) (1,350,000) Depreciation expense 560,000 Gain on disposal of PPE 65,000 The asset disposed of had a cost
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