introduction of Revenue Expenditure

Question

Give a brief introduction of the term Revenue Expenditure?

Answer 1

Revenue Expenditure is the expenses incurred in one accounting year and the Advantages from that are also enjoyed in the similar period only. This expenditure doesn’t raise the earning capability of the business but maintains the accessible earning capability of the business. It included all the expenses that are incurred throughout day to day running of business. The Advantages of this expenditure are for short period and are not forwarded to the subsequently year. This expenditure is on chronic nature.