A revenue expenditure results in a
A)debit to an expense account.
B)credit to an expense account.
C)debit to an asset account.
D)credit to an asset account.

Question

Quizplus · Accepted Answer

Revenue expenditures are expenses incurred to maintain the current level of operation of the business and are necessary for the generation of revenue. They are recorded as debits to expense accounts because they decrease the net income of the business. Examples of revenue expenditures are salaries, wages, rent, utilities, and repairs.

A Revenue Expenditure Results in a