An economy's income must equal it's expenditure to keep its budget in balance. If the income is less, it results in debt which eventually has to be paid back.
Yes
An economy's income must be equal to it's expenditure because every transaction has a buyer and a seller. It is also because every dollar of spending by some buyer is a dollar of income for some seller. Gross domestic product (GDP) measures an economy's total expenditure on newly produced goods and services and the total income earned from the production of these goods and services.
Because what goes in must come out.....
Because output generates income.
An economy's income must equal it's expenditure to keep its budget in balance. If the income is less, it results in debt which eventually has to be paid back.
Yes
An economy's income must be equal to it's expenditure because every transaction has a buyer and a seller. It is also because every dollar of spending by some buyer is a dollar of income for some seller. Gross domestic product (GDP) measures an economy's total expenditure on newly produced goods and services and the total income earned from the production of these goods and services.
One man's income is another man's expenditure. The expenditure of buyers on products is, by the rule of accounting, income to the sellers of those products. Every transaction that affects income must affect expenditure. If, for example, a company produces and sells one extra loaf of bread. This transaction will raise total expenditure on bread, but it also has an equal effect on income. If the company produces the extra loaf without hiring any more labour (such as making the production process more efficient), then profit increases. If the company produces the loaf by hiring more labour, then wages increase. In both cases, expenditure and income increase equally.
Because what goes in must come out.....
Because output generates income.
It is a process by which expenditure - including allowances for unforseen situations - is made to be less than, or equal to, the expected income. This inequality need not be satisfied in each time period but must be satisfied over the time period in question.
Because every dollar of spending by a buyer is a dollar of income for a seller
The format for capital expenditure budget is to list all the expenditure with their estimates. The cost of capital assets and expenditure must be provided.
The format for capital expenditure budget is to list all the expenditure with their estimates. The cost of capital assets and expenditure must be provided.
no
The accruals concept states that the income for the year must be matched against the expenditure. Depreciation is the reduction in value of an asset with the passage of time, due to particular wear and tear.(Answer to the question)- Depreciating the asset is an expenditure for the business. This should be matched with the income it generates (say for example - delivery vehicles used for the transport of goods) to get a true and fair profit in the Income Statement.