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Question
Amount spent on increasing the seating capacity in a cinema hall is ______.
Options
Capital expenditure
Revenue expenditure
Deferred revenue expenditure
None of the above
Solution
Amount spent on increasing the seating capacity in a cinema hall is capital expenditure.
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RELATED QUESTIONS
Which of the following is a capital transaction?
Capital expenditure is incurred for ______.
Match the Column I and Column II:
| Column - I | Column - II | ||
| (a) | Preliminary expenses of ₹ 5,000. | i | Capital Expenditure |
| (b) | Purchase of old machine for ₹ 9,500. | ii | Revenue Expenditure |
| (c) | Wage paid ₹ 1,500 for carriage for goods. | iii | Deferred Revenue Expenditure |
| (d) | Loan received from Banks ₹ 10,00,000. | iv | Capital Receipts |
Define Capital expenditure.
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