Advertisements
Advertisements
Question
State with reason whether the following is Capital or Revenue Expenditure:
Compensation paid to retrenched workers.
Solution
Revenue Expenditure
Reason:
There is no creation of an asset.
APPEARS IN
RELATED QUESTIONS
This expenditure relates to normal functioning of the government departments and provision of various government services. The main examples of such expenditures are salaries, pensions, interest, subsidies, grants to the state governments, etc.
State with reason whether the following is Capital or Revenue Expenditure:
Freight on goods sold.
State with reason whether the following is Capital or Revenue Expenditure:
Whitewashing of office premises.
State whether the following is Capital, Revenue or Deferred Revenue Expenditure.
Damages paid by a transport company to its passengers injured in an accident.
State whether the following expense is Capital or Revenue.
Commission paid to agents.
State whether the following expense is Capital or Revenue.
Purchase of typewriters for resale.
State, whether you would consider the following as Capital Expenditure or Revenue Expenditure.
Purchase of typewriter ribbons.
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Wages, salaries and rent outstanding.
Classify the following into capital expenditure and revenue expenditure.
Repairs of office furniture.
Classify the following into capital expenditure and revenue expenditure.
Insurance premium of office building.
