Which one of the following is NOT true about revenue expenditure?

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:

• Maintaining a revenue generating asset. This includes repair and maintenance expenses, because they are incurred to support current operations, and do not extend the life of an asset or improve it.
• Generating revenue. This is all day-to-day expenses needed to operate a business, such as sales salaries, rent, office supplies, and utilities. So, we can Say Option B correct one.

B)  They improve the financial position of the business......................///////////