Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Revenue expenditure refers to ongoing expenses that are necessary for the day-to-day running of a business, such as wages, rent, and utilities. These expenses are typically recorded on the income statement as they are incurred. Capital expenditure, on the other hand, refers to investments in long-term assets, such as property, equipment, and vehicles. These expenditures are typically recorded on the statement of financial position (also known as the balance sheet) and are associated with depreciation, which appears on the income statement over time.

Which of the Following Statements Is Correct