Question

In: Accounting

Revenue expenditures, also called income statement expenditures, are additional costs of plant assets that do not...

Revenue expenditures, also called income statement expenditures, are additional costs of plant assets that do not materially increase the assets' life or productive capabilities.
Select one:
a. FALSE
b. TRUE

Solutions

Expert Solution

Answer:- True.

Revenue expenditures, also called income statement expenditures, are additional costs of plant assets that do not materially increase the assets' life or productive capabilities.

​​​​​​Revenue expenses are expended to profit and loss account, in the year in which they are incurred.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Capital expenditures, also called balance sheet expenditures, are additional costs of plant assets that provide benefits...
Capital expenditures, also called balance sheet expenditures, are additional costs of plant assets that provide benefits extending beyond the current period. Select one: a. FALSE b. TRUE
The income statement and additional data of Daily ?Plus, Inc.? follows: a. Acquisition of plant assets...
The income statement and additional data of Daily ?Plus, Inc.? follows: a. Acquisition of plant assets is $116,000. Of this? amount, $106,000 is paid in cash and $10,000 by signing a note payable. b. Cash receipt from sale of land totals $21,000.There was no gain or loss. c. Cash receipts from issuance of common stock total $34,000. d. Payment of note payable is $9,000. e. Payment of dividends is $12,000. f. From the balance? sheet: September 30 2018 2017 Cash...
Expenditures made to extend an asset's life are called revenue expenditures. True False
Expenditures made to extend an asset's life are called revenue expenditures. True False
INCOME STATEMENT NET INCOME $       7,945 DEPRECIATION EXPENSE $       2,325 LOSS ON SALE OF PLANT ASSETS...
INCOME STATEMENT NET INCOME $       7,945 DEPRECIATION EXPENSE $       2,325 LOSS ON SALE OF PLANT ASSETS $         375 ADDITIONAL INFO NEW PLANT ASSETS PURCHASED $       4,250 OLD PLANT ASSETS SOLD FOR CASH $           75 ORIGINAL COST $       2,875 BONDS MATURED AND PAID OFF IN CASH CASH DIVIDEND PAID $2,018 INSTRUCTIONS PREPARE THE WORKSHEET FOR THE STATEMENT OF CASH FLOW. PREPARE THE ACTUAL STATEMENT OF CASH FLOWS. NOTE: If it is easier for you to just do the actual statement of...
LO6 (a) An income statement containing more than one revenue account requires an additional line for...
LO6 (a) An income statement containing more than one revenue account requires an additional line for each type of revenue, followed by a total amount of revenue. (b) A statement of owner's equity involving an additional investment requires a line for each additional investment beneath the beginning capital amount, followed by a total amount of investment. (c) Businesses that have more than one type of asset subject to depreciation must show a separate account for each asset on the balance...
1. Expenditures that would exist at a zero level of income are called induced expenditures.   [True...
1. Expenditures that would exist at a zero level of income are called induced expenditures.   [True or False] 2. In the equation AE = $2,000 + 0.8Y, autonomous expenditures are equal to 80 percent of income. [True or False] 3. The aggregate production curve is a 45 degree line. [True or False] 4. According to the multiplier equation, equilibrium income will be equal to the multiplier times autonomous expenditures. [True or False] 5. In the AS/AD model, an increase in...
Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does the...
Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does the word balance mean in the title of the balance sheet? Why do we balance the two halves?
Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does the...
Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does the word balance mean in the title of the balance sheet? Why do we balance the two halves? Your initial posting should be 250-500 words.
Hillside, Inc. BALANCE SHEET INCOME STATEMENT ($ in millions) ($ in millions) ASSETS LIABILITIES Revenue      ...
Hillside, Inc. BALANCE SHEET INCOME STATEMENT ($ in millions) ($ in millions) ASSETS LIABILITIES Revenue       28,681.10 Cash & Marketable Securities          449.90 Accounts Payable       1,611.20 Cost Of Goods Sold       20,768.80 Accounts Receivable          954.80 Salaries Payable          225.20 Gross Profit         7,912.30 Inventories       3,645.20 Other Current Liabilities       1,118.80 Other Current Assets          116.60 Total Current Liabilities       2,955.20 Operating Expenses: Total Current Assets       5,166.50 Selling, General & Admin.         5,980.80 Other Liabilities          693.40...
Income Statement Projected Income Statement Sales Revenue $2,500,000 Variable Costs Purchases $750,000 0.3 Direct labor $600,000...
Income Statement Projected Income Statement Sales Revenue $2,500,000 Variable Costs Purchases $750,000 0.3 Direct labor $600,000 0.24 $1,350,000 $1,150,000 Fixed Costs Selling $500,000 Administrative $485,000 Manufacturing Overhead $150,000 $1,135,000 Profit Dollars Percentage Calculate the Contribution Margin Calculate the Gross Margin Ratio Calculate Breakeven Sales Calculate Margin of Safety based on the 5% expected sales increase. Income Statement Projected Income Statement Sales Revenue $2,500,000 Variable Costs Purchases $750,000 0.3 Direct labor $600,000 0.24 $1,350,000 $1,150,000 Fixed Costs Selling $500,000 Administrative $485,000...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT