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    Question

    Which of the following refers to expenditure that is

    necessary for the day-to-day functioning of the business, typically not resulting in any asset?
    A Deferred revenue expenditure Correct Answer Incorrect Answer
    B Revenue receipt Correct Answer Incorrect Answer
    C Capital expenditure Correct Answer Incorrect Answer
    D Revenue expenditure Correct Answer Incorrect Answer

    Solution

    Revenue expenditure refers to the costs incurred in the daily operations of a business, such as wages, rent, and utilities, which do not create long-term assets. These are expensed in the profit and loss account.

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