3
Question
The benefit of revenue expenses last for ________.
The benefit of revenue expenses last for ________.
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Solution
The correct option is C not more than one year
Spending money or incurring a liability for some benefit, service or property received is called expenditure. Payment of rent. salary, purchase of goods, purchase of machinery, purchase of furniture, etc. are examples of expenditure. A revenue expenditure is a cost that is expensed in the accounting year in which it is incurred. In other words, the cost will be matched with the revenues of the accounting year in which the expenditure took place. If the benefit of expenditure is exhausted within a year, it is treated as a revenue expenditure.
Spending money or incurring a liability for some benefit, service or property received is called expenditure. Payment of rent. salary, purchase of goods, purchase of machinery, purchase of furniture, etc. are examples of expenditure. A revenue expenditure is a cost that is expensed in the accounting year in which it is incurred. In other words, the cost will be matched with the revenues of the accounting year in which the expenditure took place. If the benefit of expenditure is exhausted within a year, it is treated as a revenue expenditure.
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