Question

Amounts paid for wages, salary, carriage of goods, repairs, rent and interest, etc., are items of ___________.

• A. Capital expenditure
• B. Revenue expenditure
• C. Deferred revenue expenditure
• D. None of the above

Answer 1

Answer: (B)

Revenue expenditure

A capital expenditure is assumed to be consumed over the useful life of the related fixed asset.

A revenue expenditure is assumed to be consumed within a very short period of time.

Deferred Revenue Expenditure is an expenditure which is revenue in nature and incurred during an accounting period, but its benefits are to be derived in multiple future accounting periods

so here item given in question are assumed to be consumed within a very short period of time.