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Question
Expenses incurred for construction of a building are classified as ______.
Options
Revenue Expenditure
Capital Expenditure
Deferred Revenue Expenditure
Miscellaneous Expenditure
Solution
Expenses incurred for construction of a building are classified as Capital Expenditure.
Explanation:
Capital expenditure refers to an investment that has long-term benefits beyond the present year. Non-recurring expenditures lead to the acquisition of permanent assets.
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