Finance General Question:
Download Questions PDF

What is Revenue Expenditure?

Answer:

Revenue Expenditure is the expenditure incurred in one accounting year and the benefits from which is also enjoyed in the same period only. This expenditure does not increase the earning capacity of the business but maintains the existing earning capacity of the business. It included all the expenses which are incurred during day to day running of business. The benefits of this expenditure are for short period and are not forwarded to the next year. This expenditure is on recurring nature.

Eg: Purchase of raw material, selling and distribution expenses, Salaries, wages etc.

Download Finance General Interview Questions And Answers PDF

Previous QuestionNext Question
What is Capital Expenditure?What is Deferred Revenue Expenditure?