Question

Inauguration Expenses on opening of a new branch of an existing business is ________________.

• A. Capital Expenditure
• B. Revenue Expenditure
• C. Deferred Revenue Expenditure
• D. Prepaid Expenses

Answer 1

The correct option is B Revenue Expenditure

Inauguration expenses incurred on the opening of a new unit may help to explore more customer.

This expenditure is in the nature of Revenue expenditure, as the expenditure may not generate any enduring benefit to the business over more than one accounting period.