PRC-1 · Chapter 1 · Question 82 of 100
Which of the following transactions undertaken by a manufacturing company is a clear example of 'Revenue Expenditure'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Paying the monthly wages of the factory floor staff.
Explanation
Revenue expenditures are routine, day-to-day operating costs that do not result in the creation of a long-term asset. Paying staff wages is a classic example.
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