Extra-budgetary revenue and expenditure Extra-budgetary fund refers to financial fund of various types not covered by the regular government budgetary management, which is collected, allocated or arranged by government agencies, institutions and social organizations while performing duties delegated to them or on behalf of the government in accordance with laws, rules and regulations.
It mainly covers following items: administrative and institutional fees, governmental funds and extra charges that are stipulated by laws and regulations; administrative and institutional fees approved by the State Council and provincial governments and their financial and planning price management departments; governmental funds and extra charges established by the State Council and the Ministry of Finance; funds turned over to competent departments by their subordinate institutions; self-raised and collected funds by township governments for their own expenditure; and other financial funds that are not covered in budgetary management.
Social security funds are treated as extra-budget fund and managed for its exclusive use, given the circumstance that separate government budgetary system for social security is yet to be designed.
Special accounts are opened by the financial departments in banks for the management of revenue and expenditure of extra-budgetary fund. Extra-budgetary revenue and expenditure is managed separately, namely, revenue of institutions and departments must enter into the special accounts of the financial departments at the same administrative level, and their extra-budgetary expenditure is arranged in line with the extra-budget plans and appropriated from these accounts.
Revenue from debts refers to fund raised by the state in credit forms, including various domestic government bonds issued by the Ministry of Finance to commercial banks and other investors, bonds in foreign currencies issued by the Ministry of Finance at the international capital market, and other foreign debts borrowed and to be repaid centrally by the government finance.
Expenditure on repayment of principal of debts refers to the expenditure from government finance on the repayment of principal of domestic and foreign debts. Deficit of central government finance refers to the difference between the total expenditure and the total revenue of the central government.
The last item comes from the sale of a business unit and the income or loss a company derives from the transaction. An extraordinary gain or loss comes from an event that is both infrequent in occurrence and unusual in nature.
An example is a political coup in the United States. Accountants report revenues and expenses in operating activities, and gains and losses, in the "non-operating activities" section of a statement of profit and loss -- the other name for an income statement. They do so to ease the analytical process, so investors and business partners can set operating items apart from one-time events and their sporadic impact on financial records.
For example, the operating vs. To record revenues, a corporate bookkeeper debits the corresponding asset account and credits the sales revenue account. The journal entry to post an expense is as follows: debit the related expense account and credit the corresponding liability account. Marquis Codjia is a New York-based freelance writer, investor and banker. He has authored articles since , covering topics such as politics, technology and business.
We just launched engagement data! You might confuse your deferred revenue with your fulfilled revenue or with your backlog, for instance.
The difference between revenue expenditures and capital expenditures is another example of two similar terms that are easily mixed up. Understanding how each should be tracked can mean big savings over time and should be a firm part of your accounting strategy. Revenue expenditures are business expenses incurred during a fixed short-term accounting period.
Revenue expenditures cover all basic operating expenses OPEX required to run a business. Tracking revenue expenditure allows a business to link earned revenue with the business operations expenses incurred during the same accounting year. Everything your company buys that is not a fixed asset falls under revenue expenditure, from new desk stationery to building maintenance. Any expense that recurs consistently over a given time is a revenue expense. For example, any maintenance costs to a building owned by your company are revenue expenditures.
Brian Greenberg of True Blue Life Insurance mentions "anything from software for business to meals for your employees should be categorized as an operating expense. Certain productions costs, such as the overall price of goods or the subscription payments on development software, also qualify as operating expenses and can be reported as revenue expenditures. Revenue expenditures tend to be small. In some cases an accounting department may choose to impose an internal threshold limit for revenue expenditure—anything above a certain price will be treated as a capital expenditure and will be expensed as such.
These small costs will be listed as expenses in the current accounting period and will offset against revenue immediately.
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