Question

Money embezzled by an employee of a trader is __________.

• A. capital expenditure
• B. revenue expenditure
• C. capital loss
• D. revenue loss

Answer 1

Answer: (D)

revenue loss

Revenue losses are losses which are realized by carrying on the normal business activities of a company.

Money embezzled by an employee of a trader has happened during the course of business operations hence to be considered a revenue loss and debited to profit & loss account.