JAMB - Accounts Principles Of Accounts (2025 - No. 59)
Which of the following transactions is a revenue expenditure?
Purchase of a new engine
Construction of office wall
Purchase of fuel for vehicle
Purchase of a plant
Explanation
Revenue expenditure is money spent on the day-to-day running of a business. Its benefit lasts for less than one year, and it is charged in the same accounting year.
An example is the purchase of fuel for a vehicle, since it is a recurring expense with a short-term benefit.
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