Question

______ expenditure is incurred for meeting day to day expenses of business and its benefit is exhausted within the current accounting year.

Options

• Capital

• Revenue

• Deferred Revenue

• Capital Receipts

Answer 1

Revenue expenditure is incurred for meeting day to day expenses of business and its benefit is exhausted within the current accounting year.

Explanation:

Revenue expenditure is incurred for meeting the day-to-day requirements of the business. All expenses incurred on the day-to-day administration of a firm and the effect of which is completely exhausted within the current accounting period are called revenue expenditure.