An expenses is said to be revenue in nature if it

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Accounts - Principles of Accounts JAMB 2015

An expenses is said to be revenue in nature if it

  • adds or contributes to the operating income of the business checkmark
  • necessitates the introduction of additional capital
  • reduces the capital of the business
  • adds to or improves the value of fixed assets

The correct answer is: 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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