Question : Fill in the blanks-
Interest payment is a ________ expenditure.
Option 1: Revenue
Option 2: Capital
Option 3: Both A and B
Option 4: Neither A nor B.
Answer (1)
26th Jan, 2024
Correct Answer:
Revenue
Solution :
Interest payments is a revenue expenditure as it neither creates any assets nor reduces any liability.
Hence Option A is correct.
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