- Created by: Shajith Sharan
- Created on: 21-10-18 19:48
Revenue Income: Income earned by the business through sales of goods and servcices. These can be shown as the examples down below:
- Cash sales which are sales paid at time of purchase.
- Credit sales which are sales through credit.
- Commission which is a percentage earned on selling other goods.
- Interest being received and earned as savings.
- Rent which has been received on lands and buildings.
- Discounts received for paying a reduced price for a purchased asset.
Revenue Expenditure: The day to day expendure which can help to generate revenue.
- Inventory can be shown as stock, raw materials that have value added and are able to generate revenue and variable costs which can be used for goods.
- Rent can be used as fixed costs but not gaining a fixed premise.
- Interest can be shown as fixed costs unless…