Self Study Of Finance

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دوستان عزیز، ایمل آدرس تان را با ما شریک سازید ما برای شما یک کتاب حسابدری بسیار دلچسپ شریک میسازیم.

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A revenue expenditure is a cost that is expensed in the accounting year in which it is incurred. In other words, the cost will be matched with the revenues of the accounting year in which the expenditure took place. (This is in contrast to a capital expenditure in which the cost is deferred to the balance sheet and is then expensed over several accounting years.)

Revenue expenditures are often discussed with costs spent on fixed assets after they have been placed in service. For example, the amount spent each year to keep an ice cream's store's equipment working efficiently is a revenue expenditure. Also, the cost to repair the equipment will be a revenue expenditure. In both of these situations, the amounts spent will be debited to Repairs and Maintenance Expense and will be matched with the revenues on the current year's income statement.

On the other hand, if the ice cream store incurs a large cost to improve the equipment (to make it more than it had been) and/or to extend the equipment's useful life, the amount spent is considered to be a capital expenditure. As such, the amount is initially deferred to the balance sheet (capitalized) and will be expensed over the current and future years of the equipment's useful life.

Financial management is a separate discipline from both management accounting and financial
accounting, although in a small organisation the three roles may be carried out by the same person.
The financial manager is responsible for raising finance and controlling financial resources, including the
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 Should the firm borrow from a bank or raise funds by issuing shares?
 How much should be paid as a dividend?
 Should the firm spend money on new machinery?
 How much credit should be given to customers?
 How much discount should be given to customers who pay early

Internal auditors are employees of the company whose duties are fixed by management and who
report on the effectiveness of internal control systems.

1) Specific identification
2) First in, first out (FIFO)
3) Last in, first out (LIFO)
4) Average cost.

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Capital expenditures or capex are the amounts spent for tangible assets that will be used for more than one year in the operations of a business. Capital expenditures can be thought of as the amounts spent to acquire or improve a company's fixed assets. Some examples include the purchase of machinery, equipment, furniture, building improvements, computer information systems, and leasehold improvements.

The amount of capital expenditures for an accounting period is reported in the cash flow statement. The amount is an outflow of cash and is listed in the investing activities section of the statement. Sometimes the amount is listed as capital expenditures and sometimes it is listed as purchase of property and equipment.

The capital expenditures will also increase the respective asset accounts which are reported in the noncurrent asset section of the balance sheet entitled property, plant and equipment. Once the assets are placed in service they are depreciated over their useful lives. The accumulated depreciation for the assets is also reported as part of the property, plant and equipment.

The current period's amount of capital expenditures is often subtracted from the cash from operating activities to arrive at the company's free cash flow.

Is tangible property that is held for sale in the normal course of business or use to peoduce goods or services for sales. Inventory is reported on the balance sheet as a current asset because it normally is used or converted into cash within one year or the next operating cycle.

A) Merchandiser
B) Manufacturer

Cash-to-Cash Cycle.

Debit & Credit Concept.