Question

Revenue Expenditure is best defined as expenditure incurred for:

Options

• the acquisition of land, buildings and machinery

• the creation of physical or financial assets

• purposes other than the creation of physical or financial assets

• the reduction of financial liabilities only

Answer 1

Revenue Expenditure is expenditure incurred for purposes other than the creation of physical or financial assets. It neither creates assets nor reduces liabilities, and is used for the day-to-day running of the government.