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
jamb 2015accounting

The correct answer is A. adds or contributes to the operating income of the business

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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