Question on: JAMB Accounting - 2015
An expenses is said to be revenue in nature if it
A
adds or contributes to the operating income of the business
B
necessitates the introduction of additional capital
C
reduces the capital of the business
D
adds to or improves the value of fixed assets
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Correct Option: A
This is a very correct option to the question asked. Preliminary or preoperative expenses is a good example. They are expended and have a very great contribution to the income generated.
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