Payment of honorarium to Secretary is treated as

Correct Answer: B) Revenue Expenditure

Why this option is correct?

Honorarium paid to the secretary is a regular payment for services rendered.
It does not create any long-term asset, so it is treated as revenue expenditure.

Why other options are wrong?

A) Capital Expenditure
Capital expenditure results in creation of fixed assets, but honorarium does not create any asset.

C) Income
Payment made cannot be treated as income; it is an expense.

D) All of these
Since only revenue expenditure is correct, this option is incorrect.