Question

The cost of re-painting the exterior of Office Premises is _____ expenditure.

a) Revenue b) Capital c) Deferred revenue d) Outstanding​

Answer 1

a) Revenue is the correct answer.

• Revenue expenditure is the expenditure by the buisness companies that helps in maintaining daily operations.
• Example of revenue expenditure is rent of building etc
• Capital expenditure is the expenditure by the company that aims to acquire or upgrade the assets.
• Example of capital expenditure is purchasing plant, land etc.
• Deferred expenditure is the expenditure that is done in advance for the later delivery of entity.