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प्रश्न
Capital expenditure is incurred for ______.
पर्याय
Acquisition of fixed assets.
Day-to-day conduct of business.
Maintaining the existing earning capacity.
All of these.
उत्तर
Capital expenditure is incurred for Acquisition of fixed assets.
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.
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संबंधित प्रश्न
Expenses incurred for construction of a building are classified as ______.
Legal expenses incurred to purchase land are ______.
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 |
State whether the following is Capital, Revenue or Deferred Revenue Expenditure.
Repairs to a second-hand motor van purchased.
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.
Overhaul expenses of second hand typewriters purchased.
In the following case indicate the amount to be debited as Capital Expenditure and Revenue Expenditure:
₹ 5,000 paid as brokerage and ₹ 2,500 other expenses on issue of shares.
Classify the following:
Amount paid to an engineer for installation of machinery.
Classify the following:
Renewal fee for a lease of land.
Classify the following:
Cost of converting a petrol engine into a diesel engine.
