Which of the following is NOT a characteristic of revenue expenditure?

Revenue expenditure refers to the costs that a business incurs on a day-to-day basis to maintain operations. These expenses are essential for the ongoing functioning of the business and generally recur annually. They include costs such as rent, utilities, salaries, and raw materials, which are necessary for generating revenue in the short term and do not result in the creation of long-term assets.

The characteristic that distinguishes revenue expenditure from other types of expenditure, particularly capital expenditure, is its focus on immediate operational needs rather than long-term investment. Long-term asset creation typically involves capital expenditures, which are intended to generate benefits for a business over several years and contribute to the overall growth or expansion of the company. Since revenue expenditures do not create long-term assets, identifying long-term asset creation as a characteristic of revenue expenditure is indeed incorrect.