Question

Which of the following is a revenue expenditure?

• A. Purchase of furniture
• B. Payment of salaries
• C. Construction of building
• D. Purchase of machinery

Hint:

Revenue expenditure = recurring; Capital expenditure = one-time asset creation.

Answer 1

The Correct Option is B

Step 1: Meaning of revenue expenditure.
Revenue expenditure is recurring in nature, incurred for day-to-day operations, and its benefit is consumed within the accounting period.
Step 2: Analyse options.
- Purchase of furniture → Capital expenditure (asset creation).
- Payment of salaries → Regular expense, recurring → revenue expenditure.
- Construction of building → Capital expenditure (long-term asset).
- Purchase of machinery → Capital expenditure.
Step 3: Conclude.
Thus, payment of salaries is a revenue expenditure.
Final Answer: \[ \boxed{\text{Payment of salaries}} \]