Vidyalelo
Commerce · Q216

Accounting

Graduate and Post Graduate · Commerce · question 216

Q216

Interest on loan paid by business is an example of

A.
Revenue expense
Answer
B.
Income
C.
Asset
D.
Return outward

Answer: Option A

Solution

Answer: Option A
Solution:
Interest on loan paid by business is an example of Revenue expense. A revenue expenditure is a cost that is charged to expense as soon as the cost is incurred.