ARecurring in nature
BNon-recurring and benefits last for a long time
CRelated to day-to-day expenses
DRecorded in profit and loss account as an expense
Answer:
B. Non-recurring and benefits last for a long time
Read Explanation:
EXPENDITURE:
An expenditure represents a payment with either cash or credit to purchase asset, goods or services.
Expenditure is a wider term than expense.
The term expenditure Includes expenses also.
Expenditure can be classified into
1. Capital expenditure
2. Revenue expenditure.
CAPITAL EXPENDITURE:
Capital expenditure refers to those expenditure which are incurred to acquire fixed assets and its benefit will last for long time.
Capital expenditures are non-recurring in nature.
Its main purpose is to increase the earning capacity of the business.
Example: Amount spent to purchase fixed assets like land and building, P& M, Furniture, Goodwill, installation charges of machinery, repayment of bank loan (principal amount) etc.
REVENUE EXPENDITURE:
The amount spent by the business to purchase goods and to its day-to-day expenses is called revenue expenditure.
They are recurring in nature.
Example: Payment of salary, rent, depreciation of fixed asset, purchase of goods/raw materials, payment of electricity charges