what are revenue expenses & incomes?
- helpaneedLv 71 decade agoFavourite answer
Revenue expenses are Revenue incomes are those items which are related with the main commercial activity(ies) of a business.
Expenses and incomes can broadly be attributed to two groups namely revenue and capital. When a business pursues its main objects, it incurs expenses to generate income. Both the expenses and incomes in such a case are of revenue nature. However, when a business parks / invests the funds in its non-main objects or commercial activities, and earns income out of such investments by incurring some expenses thereon - they are not revenue incomes and expenses as such items of expenses and income are outside its main business objects to pursue.
For example, if X Co. with main objects to manufacture and deal in items PQR incurs expenses and generates income while engaged in items PQR, such expenses and incomes would be termed as revenue expenses and incomes. Whereas X Co invests into securities, bank deposits, real estate which are not related to its business etc. for meantime; all such expenses and incomes related to these investments won't be revenue in nature from X Co. point of view.
Efficiency of any business is gauged / measured by its revenue income and expenses.
- Anonymous4 years ago
Revenue ExpensesSource(s): https://shrink.im/a91CB
- Frank SLv 41 decade ago
Not certain if I have the clarity of your question so here is what I'm interpreting your post relates to:
I think you've combined two separate terms into one category in "revenue expenses." Separating the two you have: Revenue = Cash inflow to the business... and Expenses = Cash outflow from the business. Revenue and Income are commonly synonymous. At end... Revenue/Income, less Expenses, equals your Net Income or Net Loss. i.e., The Profit/Loss Statement.
Now, in a very long stretch to guess/interpret what you might be referring to as "revenue expenses" - - I will guess this to mean 'costs' spent solely and directly related to the incoming cash flow (what ever this may be.) Nonetheless, this is still "an expense" - no matter what you 'name' it.
IN coming is "Income/Revenue"
OUTflow is Cost/Expense.Source(s): http://www.middlecity.com/ch04.shtml Career: Accounting/Finance 30+/years
- Anonymous6 years ago
For a business, income refers to net profit i.e. what remains after expenses and taxes are subtracted from revenue. Revenue is the total amount of money the business receives from its customers for its products and services. For individuals, however, "income" generally refers to the total wages, salaries, tips, rents, interest or dividend received for a specific time period.
Income = Revenue − Expenses
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- Anonymous4 years ago
No, accounts payable is reflected with the current liabilities, while accounts receivable with the current assets in the Balance Sheet. In incomplete records questions you may use the accounts payable account to find the Purchases Figure (expense) and the accounts receivable account to determine the sales revenue figure.