CA Foundation Exam > CA Foundation Questions > Paper purchased for use as stationery.a)Capit...
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Paper purchased for use as stationery.
- a)Capital expenditure
- b)Revenue expenditure
- c)Deferred revenue expenditure
- d)None of the above
Correct answer is option 'B'. Can you explain this answer?
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Paper purchased for use as stationery.a)Capital expenditureb)Revenue e...
A revenue expenditure is an amount that is expensed immediately—thereby being matched with revenues of the current accounting period. Routine repairs are revenue expenditures because they are charged directly to an account such as Repairs and Maintenance Expense.
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Paper purchased for use as stationery.a)Capital expenditureb)Revenue e...
Revenue Expenditure: Explanation and Examples
Explanation:
Revenue expenditure refers to the expenses incurred by a business to maintain its normal operations and generate revenue. These expenses are short-term in nature and are incurred regularly to keep the business functioning. Revenue expenditures are considered as day-to-day expenses that do not result in the acquisition of any fixed asset. These expenses are charged against the revenue of the current accounting period and are reflected in the income statement.
Examples:
The purchase of paper for use as stationery is an example of a revenue expenditure. Other examples of revenue expenditures include:
1. Wages and salaries paid to employees
2. Rent paid on leased premises
3. Utility bills such as electricity, water, and gas
4. Office supplies such as pens, paper, and ink cartridges
5. Advertising and marketing expenses
6. Repairs and maintenance of equipment and machinery
7. Insurance premiums paid on a regular basis
8. Travel and entertainment expenses incurred by employees
In conclusion, revenue expenditures are expenses incurred by a business to maintain its operations and generate revenue. These expenses are charged against the revenue of the current accounting period and are reflected in the income statement. The purchase of paper for use as stationery is an example of a revenue expenditure.
Explanation:
Revenue expenditure refers to the expenses incurred by a business to maintain its normal operations and generate revenue. These expenses are short-term in nature and are incurred regularly to keep the business functioning. Revenue expenditures are considered as day-to-day expenses that do not result in the acquisition of any fixed asset. These expenses are charged against the revenue of the current accounting period and are reflected in the income statement.
Examples:
The purchase of paper for use as stationery is an example of a revenue expenditure. Other examples of revenue expenditures include:
1. Wages and salaries paid to employees
2. Rent paid on leased premises
3. Utility bills such as electricity, water, and gas
4. Office supplies such as pens, paper, and ink cartridges
5. Advertising and marketing expenses
6. Repairs and maintenance of equipment and machinery
7. Insurance premiums paid on a regular basis
8. Travel and entertainment expenses incurred by employees
In conclusion, revenue expenditures are expenses incurred by a business to maintain its operations and generate revenue. These expenses are charged against the revenue of the current accounting period and are reflected in the income statement. The purchase of paper for use as stationery is an example of a revenue expenditure.
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Paper purchased for use as stationery.a)Capital expenditureb)Revenue expenditurec)Deferred revenue expenditured)None of the aboveCorrect answer is option 'B'. Can you explain this answer?
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Paper purchased for use as stationery.a)Capital expenditureb)Revenue expenditurec)Deferred revenue expenditured)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Paper purchased for use as stationery.a)Capital expenditureb)Revenue expenditurec)Deferred revenue expenditured)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Paper purchased for use as stationery.a)Capital expenditureb)Revenue expenditurec)Deferred revenue expenditured)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.
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