Advertisements
Advertisements
Question
Any expenditure which is unreasonably heavy is capital expenditure.
Options
True
False
Solution
This statement is False.
APPEARS IN
RELATED QUESTIONS
An expenditure is a capital expenditure when ______.
Explain the rules for deciding whether an expenditure is of capital nature.
Cost of raising a loan.
State, whether you would consider the following as Capital Expenditure or Revenue Expenditure.
Purchase of two typewriters.
Classify the following into Capital and Revenue Expenditure.
Wages paid to workers for installation of machinery in the factory.
In the following case indicate the amount to be debited as Capital Expenditure and Revenue Expenditure:
A sum of ₹ 40,000 was spent on a machine consisting of ₹ 30,000 for increasing its production capacity, ₹ 1,000 for repairs and ₹ 9000 for replacement of worn-out parts.
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.
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 increasing the seating capacity in a cinema hall.