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प्रश्न
Expenditures incurred to acquire fixed assets are called ______.
पर्याय
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
Capital expenditure is incurred for ______.
Match the Column I and Column II:
| Column - I | Column - II | ||
| (a) | Capital Expenditure | i | Repairs costing ₹ 600 carried out on a boiler. |
| (b) | Revenue Expenditure | ii | Advertising expenses ₹ 25,000 incurred for launching a new product in the market. |
| (c) | Deferred Revenue Expenditure | iii | Interest received. |
| (d) | Revenue Receipts | iv | A sum of ₹ 15,000 spent on the overhauling of a second-hand delivery van. |
Expenditure incurred to ______ the asset is capital expenditure.
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.
Cartage paid on purchase of furniture.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
Premium ₹ 8,000 given for a lease.
Classify the following into Capital and Revenue Expenditure.
Money spent on extension of factory premises.
In the following case indicate the amount to be debited as Capital Expenditure and Revenue Expenditure:
A total expenditure of ₹ 50,000 was incurred on factory buildings out of this 20% related to repairs and 80% related to extensions.
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.
