Which of the following would be considered a revenue expenditure?
A)Cleaning the ink from a printing press
B)Addition of a storeroom
C)Purchase of office furniture
D)Installation of audiovisual equipment in a classroom

Question

Quizplus · Accepted Answer

Cleaning the ink from a printing press is a maintenance expense that keeps the printing press in good condition and is considered a revenue expenditure as it is necessary to maintain the production process. The other options involve capital expenditures as they involve the purchase or addition of new assets that will provide benefits for several years.

Which of the Following Would Be Considered a Revenue Expenditure