Concept:Revenue expenditure is money spent to run the day-to-day operations and earn income for the current period.
Explanation:An expense is revenue in nature when it directly helps the business earn its regular operating income.
Such expenses do not create or improve a fixed asset.
They are used up within one accounting period.
Typical examples include rent, salaries, and repairs.
Therefore, the expense adds to or contributes to the operating income of the business.
Answer:A. adds or contributes to the operating income of the business