I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

Revenue expenditure results from the purchase of goods and services for one of the following reasons. 

(a) 

To be used fully in the accounting period in which they are purchased, and so be a cost or 

expense in the statement of profit or loss. 

(b) 

To result in a current asset as at the end of the accounting period because the goods or services 

have not yet been consumed or used. The current asset would be shown in the statement of 

financial position and is not yet a cost or expense in the statement of profit or loss. 

For instance, inventory which is purchased for resale will either be sold during the period as per (a) or 

still be in inventory as per (b).