What do you mean by revenue expenditure? Why is payment of interest an

1.	What do you mean by revenue expenditure? Why is payment of interest and subsidies revenue expenditure?
Answer» Revenue expenditure is an expenditure which neither creates an asset nor reduces any liability. Payment of interest neither creates an asset nor reduces any liability. So treated as revenue expenditure. Subsidies neither create an asset nor reduce any liability. So treated as revenue expenditure.

What do you mean by revenue expenditure? Why is payment of interest and subsidies revenue expenditure?

Answer»

Revenue expenditure is an expenditure which neither creates an asset nor reduces any liability.

Payment of interest neither creates an asset nor reduces any liability. So treated as revenue expenditure.

Subsidies neither create an asset nor reduce any liability. So treated as revenue expenditure.

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What do you mean by revenue expenditure? Why is payment of interest and subsidies revenue expenditure?

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