Question

26. New tyres to replace old tyres for delivery van.
á Revenue expenditure
(b) Capital expenditure
(c) Deferred revenue expenditure
(d) None of the above​

Answer 1

Explanation:

revenue expenditure is a correct answer

Answer 2

New tyres to replace old tyres for delivery van is a type of (a) Revenue expenditure

• New tyres to replace old tyres for delivery Van is a type of revenue expenditure.
• Revenue expenditures are those types of Expenditure that are incurred whose benefit is exhausted within a short period of time most probably one year.
• These are short term expenses used in the current period. It is incurred to meet the day to day operation cost of running the business and does these expenses are recurring in nature which means it is incurred again and again in near future and does not form part of fixed asset cost.
• Examples of such revenue expenditure are wages and salaries audit fees and many more