Asked by Thanh Huynh on Apr 27, 2024
Verified
The excess of revenue over the expenses incurred in earning the revenue is called capital.
Revenue Excess
Typically refers to the situation where the revenues exceed the expenses within a given period, leading to a positive income.
Expenses Incurred
Costs that have been realized in the course of business operations, regardless of payment status.
Capital
Capital refers to financial assets or their financial value, along with the physical factors of production used to create goods and services.
- Gain an understanding of the approach and value of recording financial gains and costs.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
False
Explanation :
The excess of revenue over the expenses incurred in earning the revenue is called profit, not capital. Capital refers to the initial investment or the total amount of money a business has available to use.
Learning Objectives
- Gain an understanding of the approach and value of recording financial gains and costs.