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Payment of Honorarium to secretary is treated as:
Capital Expenditure
Revenue Expenditure
Cash Expenses
None of these
A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place. Revenue expenditures are often discussed in the context of fixed assets. The revenue expenditures take place after a fixed asset had been put into service and simply keeps the asset in working order. (The amount spent to acquire a fixed asset is referred to as a capital expenditure. The amount of the capital expenditure will be recorded as an asset and will then be moved to the income statement as depreciation expense over the years of the asset's useful life.)
By: DATTA DINKAR CHAVAN ProfileResourcesReport error
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