An expenses is said to be revenue in nature if it
FINANCIAL
JAMB 2015
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: A. adds or contributes to the operating income of the business
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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