An expenses is said to be revenue in nature if it

An expenses is said to be revenue in nature if it
  • A.
    adds or contributes to the operating income of the business
  • B.
    necessitates the introduction of additional capital
  • C.
    reduces the capital of the business
  • D.
    adds to or improves the value of fixed assets
Correct Answer: Option A
Explanation

This is a very correct option to the question asked. Preliminary or preoperative expenses is a good example. They are expended and have a very great contribution to the income generated.

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