Wages paid for erection of a new plant or machinery are taken as _____.
Capital Expenditure
The correct answer is option 2. Wages paid for the erection of a new plant or machinery are considered Capital Expenditure because they are incurred for the construction or acquisition of long-term assets that will benefit the business over a long period.
Important Questions from Assets & Liabilities
The freight and insurance paid for acquiring goods or for making them saleable is ________.
Which of the following is NOT regarded as a capital expenditure?
Which concept enables the accountant to carry forward the values of assets and liabilities from one accounting period to the other without asking the question about usefulness and worth of the assets and recoverability of the receivables?
Which of the following is NOT regarded as a revenue expenditure?
Which one of the following is a revenue expenditure?
