Advertisements
Advertisements
Question
An expenditure is a capital expenditure when ______.
Options
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.
Solution
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.
APPEARS IN
RELATED QUESTIONS
Pre-operative expenses are ______.
Expenditures incurred to acquire fixed assets are called ______.
Cost of raising a loan.
State, whether you would consider the following as Capital Expenditure or Revenue Expenditure.
Purchase of two typewriters.
In the following case indicate the amount to be debited as Capital Expenditure and Revenue Expenditure:
A new machine is purchased for ₹ 25,000, ₹ 500 are spent on its carriage and ₹ 1,500 were paid as wages for its installation.
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.
Classify the following:
Cost of converting a petrol engine into a diesel engine.
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Amount paid by a publisher for acquiring copyright.
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Cost of painting the name of the company and other advertisement message on a newly purchased delivery van.
