Advertisements
Advertisements
Question
State whether the following expense is Capital or Revenue.
Fire insurance premium on premises.
Solution
Revenue Expenditure
Reason:
Regular premium payments are made on an already-existing asset.
APPEARS IN
RELATED QUESTIONS
An expenditure is Revenue expenditure if ______.
'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:
Compensation paid to retrenched workers.
State with reason whether the following is Capital or Revenue Expenditure:
Cost of repairing machinery.
State with reason whether the following is Capital or Revenue Expenditure:
Whitewashing of office premises.
State whether the following expense is Capital or Revenue.
Excise duty paid to the Government.
State whether the following expense is Capital or Revenue.
Commission paid to agents.
Classify the following into Capital and Revenue Expenditure.
Cost of uniform distributed among workers.
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Depreciation on fixed assets.
Classify the following into capital expenditure and revenue expenditure.
Travelling expenses paid to salesman.
