Question

All expenses incurred on day-to-day administration of a firm and the effect of which is completely exhausted within the current accounting are called revenue receipt.

Options

• True

• False

Answer 1

False

Explanation:

These day‑to‑day administrative outflows whose benefit is exhausted within the accounting year are revenue expenditure (expense), not revenue receipts; receipts are inflows, while such costs are charged to the Profit & Loss.