Feature of revenue expenditures

There are following main features or characteristics of revenue expenditures . These features are very useful for your decision to adding any expenses in profit and loss account .

1. General operating expenses

Any expenses which is related general operation of business that all expenses will be revenue expenditures and will be debited in profit and loss account


2. Expenses related to short period

These type of expenses are related to short period, means benefit of these expenses is less than one year.

3. Expenses for maintaining the stability of fixed assets

These expenses’ main feature is that these expenses is useful for maintaining the stability or efficiency of fixed assets,

4. Recurring Nature

One of most important feature of these expenses that these expenses are recurring nature. In other words these expenses happen Again and again in general business activities. For example , expenses for giving refreshment is revenue expenditure because almost daily , these type of expenses is paid by company .

5. Helpful for maintaining the profit of business

These type of expenditure is useful for maintaining the profit of business , but also above features should include in the expenses which I have mentioned in above points because capital expenditure will also helpful for maintaining the profit and you will then confused revenue and capital expenditure’s difference .

Read Also

• Different types of Expenses
• Some accounting terms
• Securitisation
• income and expenditure account in tally 7.2