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  4. JAMB 2015
  5. An expenses is said...

An expenses is said to be revenue in nature if it

Accounts - Principles of Accounts
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
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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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Post UTME Past Questions Agent
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
Post UTME Past Questions Agent
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC and NECO CBT App for Mobile Devices - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now