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How drawings account is contra equity account?
Drawing account is used to reduce the capital by the owners of the business from business that's why it is called the contra account for equity account.
Is salaries a recurrent expenditure?
Salaries are require to be paid every month so it is a recurrent expenditure of business and called the revenue expenditures.
What is considered a revenue?
Amount received from sales of goods or services in normal routine of business and goods and services related to normal business of the company are considered revenu.For Example: if company is in flower business so sales of flowers and earning from flower sales is called revenue but if money earned through sale of some books which is not primary business of company is not revenue.
An account used to record the owner's investments in the business is called?
capital accounts
What is the difference between the revenue that a company brings in from selling goods and services and the cost of generating this revenue called?
For a normal business it is Profit or Loss (depending upon which is greater) For a non-profit organisation (eg a Charity) it is Surplus or Deficit.
How drawings account is contra equity account?
Drawing account is used to reduce the capital by the owners of the business from business that's why it is called the contra account for equity account.
What is A temporary account used in closing revenue and expense accounts called?
The answer is income summary.
Is salaries a recurrent expenditure?
Salaries are require to be paid every month so it is a recurrent expenditure of business and called the revenue expenditures.
What is Preliminary Expenses?
All the expenses which a business incurred from start of business to actual start of operations of revenue generating activity of business is called preliminary expenses.
Income summary also called?
The income summary is also referred to as the revenue summary or the profit and loss statement. It serves as a temporary account used to close revenue and expense accounts at the end of an accounting period.
What is considered a revenue?
Amount received from sales of goods or services in normal routine of business and goods and services related to normal business of the company are considered revenu.For Example: if company is in flower business so sales of flowers and earning from flower sales is called revenue but if money earned through sale of some books which is not primary business of company is not revenue.
Why sale of assets is known as revenue and sale of goods is not?
No, sales of goods is known as revenue because goods are maintain for the purpose of sales that's why it is called revenue while assets are maintained to use for the working of operation of business so if assets are sold then amount received from it is not called as revenue.
Why is it necessary to distinguish between capital and revenue?
Then only they find the real profit or loss and financial position of the businessBecause the capital expenditure will take place to Balance sheet and revenue expenditure will go to profit and loss account. Capital expenditure also called asset of the business. These expenditure also called non-recurring nature expenses.Revenue expenditure also called recurring nature expenses.
What is difference between merchandising and visual merchandising?
Let me give you my little understanding about his two subjects. Merchandising is also called merchandise planning while visual merchandising is the art of implementing effective design ideas.
What is room revenue?
the amount received through selling rooms. it can be calculated in REVPAR (Revenue per available room) and REVPOR (Revenue per occupied room)
Why is it necessary to distinguish between capital and revenue expenditure?
Then only they find the real profit or loss and financial position of the businessBecause the capital expenditure will take place to Balance sheet and revenue expenditure will go to profit and loss account. Capital expenditure also called asset of the business. These expenditure also called non-recurring nature expenses.Revenue expenditure also called recurring nature expenses.
What is The total amount of money a business takes in during a given period by selling goods and services is called?
Revenue
