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Which of the following would be classified as revenue expenditure in the Income and Expenditure Account?
  • a)
    Purchase of a new building
  • b)
    Annual depreciation of equipment
  • c)
    Receipts from the sale of an asset
  • d)
    Capital introduced by members
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Which of the following would be classified as revenue expenditure in t...
Annual depreciation of equipment is a revenue expenditure as it relates to the wear and tear of assets over time, affecting the operational income and expenses.
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Which of the following would be classified as revenue expenditure in the Income and Expenditure Account?a)Purchase of a new buildingb)Annual depreciation of equipmentc)Receipts from the sale of an assetd)Capital introduced by membersCorrect answer is option 'B'. Can you explain this answer?
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