Q245
Which one of the following is NOT true about revenue expenditure?
A.
These are the running expenses of the business
B.
They improve the financial position of the business
AnswerC.
They reduce the profit of the concern
D.
They do not appear in the balance sheet
Answer: Option B
Solution
Answer: Option B
Solution:
Revenue expenditure does not improve the financial position of the business. Revenue expenditures are typically referred to as ongoing operating expenses.