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A) These are the running expenses of the business
B) They improve the financial position of the business
C) They reduce the profit of the concern
D) They do not appear in the balance sheet
Option B is the right answer.
They improve the financial position of the business. (option B)
A revenue expenditure is a cost that is charged to expense as soon as the cost is incurred. By doing so, a business is using the matching principle to link the expense incurred to revenues generated in the same accounting period. This yields the most accurate income statement results.
There are two types of revenue expenditure:
B) They improve the financial position of the business......................///////////