Answer : All expenses incurred in running a business such as salaries, wages, rent, lighting, stationary etc. are classed as revenue expenditure. Beside expense incurred in putting the fixed assets in proper order by repairs and renewals are also revenue expenditures.
👍Q : What is Asset ?
Answer : Assets are a company’s resources—things the company owns. Examples of assets include cash, accounts receivable, inventory, prepaid insurance, investments, land, buildings, equipment, and goodwill. From the accounting equation, we see that the amount of assets must equal the combined amount of liabilities plus owner’s (or stockholders’) equity.
Q👍 : what is Liabilities ?
Answer : Liabilities are a company’s obligations—amounts the company owes. Examples of liabilities include notes or loans payable, accounts payable, salaries and wages payable, interest payable, and income taxes payable
👍 Q : what is Owner’s or stockholders’ equity ?
Answer : Owner’s or stockholders’ equity also reports the amounts invested into the company by the owners plus the cumulative net income of the company that has not been withdrawn or distributed to the owners.
👍 Q : definition of revenue?
Answer : this is the total amount of money received by the company for goods sold or services provided during a certain time period.
Q👍 : definition of expense ?
Answer : Payment of cash or cash-equivalent for goods or services, or a charge against available funds in settlement of an obligation as evidenced by an invoice, receipt, voucher, or other such document.
Q👍 :What is depreciation?
Answer :A non cash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence. Most assets lose their value over time (in other words, they depreciate),
👍 Q : What is income statement ?
Answer : A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time .
Q👍 : what is balance sheet ?
Answer : A financial statement that summarizes a company’s assets, liabilities and shareholders’ equity at a specific point in time.
Q👍 : what is cash flow ?
Answer : any business venture , operation, or product that is a dependable source of income or profit .
Q👍 : definition of tax ?
Answer : A fee charged (“levied”) by a government on a product, income, or activity of an organization or person .
Q👍 : What is direct tax ?
Answer : In the general sense, a direct tax is one paid directly to the government by the persons or organization (juristic or natural) on whom it is imposed (often accompanied by a tax return filed by the taxpayer). Examples include some income taxes, some corporate taxes, and transfer taxes such as estate (inheritance) tax and gift tax.
Q👍 : What is indirect tax ?
Answer : A tax, such as a sales tax or value-added tax, that is levied on goods or services rather than individuals and is ultimately paid by consumers in the form of higher prices.
Q👍 : what is Tax holiday ?
Answer : A government incentive program that offers a tax reduction or elimination to businesses. Tax holidays are often used to reduce sales taxes by local governments, but they are also commonly used by governments in developing countries to help stimulate foreign investment.
Q👍 : what is VAT?
Answer : Value Added Tax. A consumption tax which is levied at each stage of production based on the value added to the product at that stage.
Q👍 : What is income tax ?
Answer : a tax levied on incomes, especially an annual government tax on personal incomes.
Q : What is internal rate of return (IRR)
Answer : The internal rate of return (IRR) is a rate of return used in capital budgeting to measure and compare the profitability of investments. It is also called the discounted cash flow rate of return (DCFROR) or simply the rate of return (ROR)
👍 Q : what is Net present value?
Answer : Net present value is an economic standard method for evaluating competing long-term projects in capital budgeting
Q👍 : What is fair market value?
👍Q : What is Asset ?
Answer : Assets are a company’s resources—things the company owns. Examples of assets include cash, accounts receivable, inventory, prepaid insurance, investments, land, buildings, equipment, and goodwill. From the accounting equation, we see that the amount of assets must equal the combined amount of liabilities plus owner’s (or stockholders’) equity.
Q👍 : what is Liabilities ?
Answer : Liabilities are a company’s obligations—amounts the company owes. Examples of liabilities include notes or loans payable, accounts payable, salaries and wages payable, interest payable, and income taxes payable
👍 Q : what is Owner’s or stockholders’ equity ?
Answer : Owner’s or stockholders’ equity also reports the amounts invested into the company by the owners plus the cumulative net income of the company that has not been withdrawn or distributed to the owners.
👍 Q : definition of revenue?
Answer : this is the total amount of money received by the company for goods sold or services provided during a certain time period.
Q👍 : definition of expense ?
Answer : Payment of cash or cash-equivalent for goods or services, or a charge against available funds in settlement of an obligation as evidenced by an invoice, receipt, voucher, or other such document.
Q👍 :What is depreciation?
Answer :A non cash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence. Most assets lose their value over time (in other words, they depreciate),
👍 Q : What is income statement ?
Answer : A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time .
Q👍 : what is balance sheet ?
Answer : A financial statement that summarizes a company’s assets, liabilities and shareholders’ equity at a specific point in time.
Q👍 : what is cash flow ?
Answer : any business venture , operation, or product that is a dependable source of income or profit .
Q👍 : definition of tax ?
Answer : A fee charged (“levied”) by a government on a product, income, or activity of an organization or person .
Q👍 : What is direct tax ?
Answer : In the general sense, a direct tax is one paid directly to the government by the persons or organization (juristic or natural) on whom it is imposed (often accompanied by a tax return filed by the taxpayer). Examples include some income taxes, some corporate taxes, and transfer taxes such as estate (inheritance) tax and gift tax.
Q👍 : What is indirect tax ?
Answer : A tax, such as a sales tax or value-added tax, that is levied on goods or services rather than individuals and is ultimately paid by consumers in the form of higher prices.
Q👍 : what is Tax holiday ?
Answer : A government incentive program that offers a tax reduction or elimination to businesses. Tax holidays are often used to reduce sales taxes by local governments, but they are also commonly used by governments in developing countries to help stimulate foreign investment.
Q👍 : what is VAT?
Answer : Value Added Tax. A consumption tax which is levied at each stage of production based on the value added to the product at that stage.
Q👍 : What is income tax ?
Answer : a tax levied on incomes, especially an annual government tax on personal incomes.
Q : What is internal rate of return (IRR)
Answer : The internal rate of return (IRR) is a rate of return used in capital budgeting to measure and compare the profitability of investments. It is also called the discounted cash flow rate of return (DCFROR) or simply the rate of return (ROR)
👍 Q : what is Net present value?
Answer : Net present value is an economic standard method for evaluating competing long-term projects in capital budgeting
Q👍 : What is fair market value?