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Revenue expenditure differs from capital expenditure in being:
AAlways larger than capital expenditure
BSmall amount, recurring, benefit consumed within one accounting period
CAlways non-recurring
DAlways disclosed in non-current assets
Answer & Solution
Correct answer: B. Small amount, recurring, benefit consumed within one accounting period
1. Per OCR: revenue expenditure characteristics — (a) generally small amount, (b) benefit within one accounting period, (c) recurring, (d) relates to trading activities.
2. Examples: salaries, rent, regular maintenance.
3. Goes to P&L of the period.
_Source: ICMAI BoS CMA Foundation Paper 2 (FFCA) — Paper2_07042026.pdf, Module 1 §1.3.1 (page 20)_