Directors' remuneration are recorded in the book as
Answer Details
Directors' remuneration is recorded in the book as revenue expenditure.
Revenue expenditure is a type of expenditure that is incurred in the normal course of business operations, and which is expected to provide benefits in the current period only. This includes expenses such as salaries, wages, rent, and utilities.
Directors' remuneration refers to the amount paid to the directors of a company for their services. This includes their salary, bonuses, and any other benefits they receive in connection with their position as directors.
Since directors' remuneration is a recurring expense and is incurred in the normal course of business operations, it is recorded as revenue expenditure. This means that it is deducted from the revenue earned by the company during the same accounting period to arrive at the net profit.
Recording directors' remuneration as revenue expenditure helps to ensure that the expenses associated with running the business are properly accounted for in the income statement. It also helps to provide a more accurate picture of the profitability of the business, as all expenses are deducted from revenue to arrive at the net profit.
Therefore, directors' remuneration is recorded in the book as revenue expenditure.