Which of the following is a revenue expenditure? MCQ with Answer and Explanation

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Which of the following is a revenue expenditure?

A. Extension of building

B. Purchase of land for factory

C. Annual repairs of machinery

D. Legal expenses to acquire a building

Answer: Option C

Solution (By JKExamLibrary)

Annual repairs are recurring and maintain existing asset's earning capacity, hence revenue expenditure. Others are capital expenditures.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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The 'ICAI' issues:

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Question #2 Report Error

The 'Budget' is presented in Parliament by:

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This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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