Nov06
2017The modern accounting system of double entry book keeping is based on certain principles and standards. One of them is the concept of matching costs with the revenue or benefits derived from such costs. However, in real life business scenario, not all income and costs directly match up with the goods and services sold or the assets purchased. In many cases, the cost is incurred at present but value received from such expenditure is actually delayed over time. According to generally accepted accounting principles, money and value should be matched whenever possible. This means that a business must account for expenditures that may not immediately generate profit in the current accounting period.
While revenue expenditure is a simple concept, deferred revenue expenditure is slightly more complicated. In this case, the value received from the expenditure is not immediate.
Oct30
2017Oct23
2017In the world nothing can be said to be certain, except death and taxes
– Benjamin Franklin
Oct16
2017Oct09
2017Oct02
2017