Revenue Expenditures - Expenditures made in connection with the running expenses of the
legitimate business of the firm or corporation concerned. What is spent to earn a revenue. That
which is made to conduct a business, but by means of it no permanent asset is required.
Whatever is expected to be consumed during the earning period should be charged to revenue. If
it has only had the effect of putting the earning power of the undertaking upon the same footing as
that which had previously obtained, it must be charged against revenue.
legitimate business of the firm or corporation concerned. What is spent to earn a revenue. That
which is made to conduct a business, but by means of it no permanent asset is required.
Whatever is expected to be consumed during the earning period should be charged to revenue. If
it has only had the effect of putting the earning power of the undertaking upon the same footing as
that which had previously obtained, it must be charged against revenue.
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