Here we detail about the two types of revenue expenditures, i.e., (i) Direct Expenses and (ii) Indirect Expenses. The above diagram presents the circular flow of production and a dotted line demarcate the expenses into direct and indirect. The expenses falling above the dotted line are direct and expenses below the dotted line are indirect in nature. (i) Direct Expenses: [...]
This article provides a short note on deferred revenue expenditure. Sometimes, it may happen that the business enterprise may incur revenue expenditure, but the amount is so heavy that the benefit of the same would last for numbers of years. In that case, such expenditure should be capitalized and treated as deferred revenue expenditure. Sometimes, heavy losses due to the [...]
This article provides a short note on deferred revenue expenditure. Sometimes, it may happen that the business enterprise may incur revenue expenditure, but the amount is so heavy that the benefit of the same would last for numbers of years. In that case, such expenditure should be capitalized and treated as deferred revenue expenditure. Sometimes, heavy losses due to the [...]