- 1 Marks
Question
Expenditure that does not create a long-term asset is called:
A. Capital expenditure
B. Investment expenditure
C. Revenue expenditure
D. Sundry expenditure
E. Capital budgeting expenditure
Answer
C. Revenue expenditure
Explanation: Revenue expenditure refers to spending on short-term items, such as maintenance or repairs, that do not result in the creation of a long-term asset. This makes “C. Revenue expenditure” the correct answer.
- Tags: Capital Expenditure, Expenditure, Revenue Expenditure
- Level: Level 1
- Topic: Basics of Business Finance and Financial Markets
- Series: MAY 2018
- Uploader: Theophilus