Question

Expenses incurred to maintain the business, cost of stores consumed in the course of manufacturing e.g. oil, cotton - waste are _______________.

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

Answer 1

The correct option is B Revenue expenditure

A revenue expenditure is an amount that is expended immediately—thereby being matched with revenues of the current accounting period. i.e. Routine expenses.

Capital and deferred revenue expenditure are those expenses which are allocated over multiple periods.

In given question cost incurred for maintenance of business, cost of stores consumed is routine expenses.