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प्रश्न
Expenditures incurred to acquire fixed assets are called ______.
विकल्प
Revenue expenditures
Prepaid expenses
Capital expenditures
Outstanding expenses
उत्तर
Expenditures incurred to acquire fixed assets are called Capital expenditures.
Explanation:
All expenditure incurred to acquire or increase the value of fixed assets which are used in the business for the purpose of earning revenue are called capital expenditure.
संबंधित प्रश्न
Match the Column I and Column II:
| Column - I | Column - II | ||
| (a) | Sale of Assets | i | Capital Expenditure |
| (b) | Interest paid on loan | ii | Capital receipt |
| (c) | Purchased land | iii | Revenue expenditure |
| (d) | Interest received | iv | Revenue receipt |
Explain the rules for deciding whether an expenditure is of capital nature.
Any expenditure which is unreasonably heavy is capital expenditure.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
Wage paid for extension of office premises.
State whether the following expense is Capital or Revenue.
Charges paid for registration of a trade mark.
State whether the following expense is Capital or Revenue.
Purchase of a computer for the office.
State, whether you would consider the following as Capital Expenditure or Revenue Expenditure.
Purchase of two typewriters.
State, whether you would consider the following as Capital Expenditure or Revenue Expenditure.
Cost of director's trip abroad for purchase of a new plant.
In the following case indicate the amount to be debited as Capital Expenditure and Revenue Expenditure:
Second hand motor van worth ₹ 60,000 was purchased and repairing of this cost ₹ 8,000.
Classify the following:
Amount paid to an engineer for installation of machinery.
