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Question
Carriage, freight, octroi duty, customs duty, clearing charges, dock dues, and excise duty paid on machinery are examples of ______.
Options
Capital expenditure
Capital loss
Revenue expenditure
Revenue loss
Solution
Carriage, freight, octroi duty, customs duty, clearing charges, dock dues, and excise duty paid on machinery are examples of Capital expenditure.
Explanation:
- Capital expenditures are all expenditures incurred to acquire or increase the value of fixed assets used in the business to earn revenue.
- Some examples include Carriage, freight, octroi duty, customs duty, clearing charges, dock dues, etc.
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