Capital and Revenue Expenditure

Capital and Revenue Expenditure

Key Takeways: • define capital and revenue expenditure • distinguish between capital and revenue expenditure • classify accounting transactions as capital and revenue expenditure • analyse the effects of differences in classification and treatments of capital and revenue expenditure on profit/loss for the period and non-current assets Source: 7087_y22_sy Principles of Accounts O-Level for 2022 (seab.gov.sg) Definition and differences…

AI Bookkeeping: The Future of Accounting for Finance Professional

AI Bookkeeping: The Future of Accounting for Finance Professional

In 2020, the global revenue for the artificial intelligence (AI) market for software, hardware, and services segments grew to 281.4 billion U.S. dollars. The AI market is expected to grow to 327.5 billion U.S. dollars. Just as AI is slated to touch every sector, accounting is a function that is already leveraged by sector. Hence,…

Allowance for impairment of trade receivables

Allowance for impairment of trade receivables

What is Allowance for impairment of trade receivables? The allowance for impairment of trade receivables estimates the percentage of accounts receivable that are expected to be uncollectible. The percentage estimated is usually based on historical credit loss experience An allowance for impairment of trade receivables is considered a “contra asset,” because it reduces the amount…

A Complete Guide to Understanding Cost of Sales

This article uses the periodic inventory system to account for cost of sales Photo by Adam Kring / Unsplash If you wonder what makes sales different from the cost of sales or COS, then you are on the right page!  In finance and accounting, sales are revenues produced by a business from rendering services or…

Scenario Based Questions

Scenario Based Questions

For The New GCE 0/N Level 7086/7087 Principles Of Accounts Syllabus First Examinable In 2021. “Scenario Based Questions is difficult because it’s so new!” Unchartered Waters – For Who? The problem of SBQs being ‘challenging’ has nothing to do with the students,– they are learning Principles of Accounts only in Sec 3. Everything will be…