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प्रश्न
An expenditure is a capital expenditure when ______.
पर्याय
It relates to sale fixed assets.
It arises due to abnormal reasons.
It involves withdrawal of capital.
It relates to maintain the efficiency of an asset.
उत्तर
An expenditure is a capital expenditure when it involves withdrawal of capital.
Explanation:
Capital expenditure is incurred either to purchase or build a non-current asset, or to improve or upgrade an existing non-current asset.
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संबंधित प्रश्न
Which of the following type of expenses are included in capital expenditure?
Explain the rules for deciding whether an expenditure is of capital nature.
State with reason whether the following is Capital or Revenue Expenditure:
Cost of overhauling a second-hand machine.
State whether the following is Capital, Revenue or Deferred Revenue Expenditure.
Cost of painting the new office building.
State whether the following is Capital, Revenue or Deferred Revenue Expenditure.
Repairs to a second-hand motor van purchased.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
Temporary huts built at a cost of ₹ 3,000 for construction of factory buildings. The huts were demolished when the factory building was ready.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
₹ 15,000 paid for obtaining a mortgage.
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.
Classify the following:
Renewal fee for a lease of land.
Classify the following:
Cost of converting a petrol engine into a diesel engine.
