The expenditure on a good or services which is consumed either immediately or within a current accounting period is called

Assessment: JAMB UTME - Principles of Accounts - 1994 Subject: Financial Accounting

Question 1 Report

The expenditure on a good or services which is consumed either immediately or within a current accounting period is called
Answer Details
The expenditure on a good or service which is consumed either immediately or within a current accounting period is called "Recurrent expenditure". Recurrent expenditure is a type of expenditure that is recurring in nature and is incurred on a regular basis to maintain the normal day-to-day operations of a business or organization. Examples of recurrent expenditure include salaries and wages, rent, utilities, and office supplies. Unlike capital expenditure, which is incurred on long-term assets such as buildings or equipment, recurrent expenditure is not meant to generate future income or benefits beyond the current accounting period.
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