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The revenue expenditures take place after a fixed asset had been put into service and simply keeps the asset in working order.
Revenue expenditure business definition. All the expenditures which are incurred in the day to day conduct and administration of a business and the effect of which is completely exhausted within the current accounting year are known as revenue expenditures. Meaning pronunciation translations and examples. They are considered significant for generating revenue in a given accounting period. The amount spent to acquire a fixed asset is referred to as a capital expenditure.
Revenue expenditures are often discussed in the context of fixed assets. Revenue expenditure also known as operating expenses or opex refers to the expenditure incurred in the course of the day to day business activities i e. The amount of money spent by a business or organization on general operating costs such.
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