Definition and Explanation of Revenue Expenditures

Revenue expenditures are expenses
which are incurred in the day to day conduct and administration of business and
the effect which is completely exhausted within the current accounting year.
These expenditures are recurrent by nature i.e. which are incurred for meeting
day to day requirement of a business and the effect of these expenditures is
always short-lived, they are also known as “expenses or expired costs” e.g.
purchase of goods, salaries paid, postages, rent, traveling expenses,
stationery purchased, wages paid on goods purchased e.t.c. These expenditures
is incurred on items or services which are useful to the business but are used
up in less than one year and therefore, only temporarily increase the
profit-making capacity of the business.