What is an expense is classified as revenue expenditure if it?
An expense is classified as revenue expenditure if it contribute to the operating income of the business.
Definition of Revenue Expenditure A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place. Revenue expenditures are often discussed in the context of fixed assets. The revenue expenditures take place after a fixed asset had been put into service and simply keeps the asset in working order.
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