Which one of the following is a revenue expenditure

Cost of extension of factory building
Legal cost of purchase of a building
Purchase of freehold building
Cost of painting old building

The correct answer is D. Cost of painting old building.

Revenue expenditure is an expense that is incurred in the course of ordinary business operations and is not expected to benefit the business for more than one year. It is usually classified as an expense on the income statement.

The cost of extension of factory building is a capital expenditure because it is an asset that will benefit the business for more than one year. The legal cost of purchase of a building is also a capital expenditure because it is an expense that is incurred in the acquisition of an asset. The purchase of freehold building is a capital expenditure because it is an asset that will benefit the business for more than one year.

The cost of painting old building is a revenue expenditure because it is an expense that is incurred in the ordinary course of business and is not expected to benefit the business for more than one year.