Advertisements
Advertisements
Question
Cartage paid on purchase of machinery is a revenue expenditure.
Options
True
False
Solution
This statement is False.
APPEARS IN
RELATED QUESTIONS
What is meant by Revenue Expenditure?
Give six examples of revenue expenditure becoming capital expenditure.
'Whether an expenditure is of revenue or capital nature, is a question of fact and must depend on the circumstances of each case." Comment, giving appropriate examples.
State with reason whether the following is Capital or Revenue Expenditure:
Cost of repairing machinery.
State whether the following is Capital, Revenue or Deferred Revenue Expenditure.
Purchase of raw materials.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
₹ 20,000 spent on dismantling, removing and reinstalling plant and machinery.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
Legal expenses ₹ 5,000 on defending a suit for breach of contract to supply goods.
State whether the following expense is Capital or Revenue.
Interest paid on bank overdraft.
Classify the following:
Purchase of stationery.
Classify the following into capital expenditure and revenue expenditure.
Insurance premium of office building.
