Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 26 - No. 36)
In the income and expenditure account, what is the treatment of revenue expenditure?
It is treated as an asset.
It is deducted from income to arrive at a surplus or deficit.
It is added to income to determine the surplus or deficit.
It is shown in the balance sheet.
Explanation
Revenue expenditure reduces the profit or increases the loss of the income and expenditure account.
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