Which of the following is NOT regarded as a capital expenditure?
The purchase of snacks and food stuff for ₹52,000.
The correct answer is option 3. The purchase of snacks and food stuff is considered a revenue expenditure, not a capital expenditure. Capital expenditure refers to expenses that provide long-term benefits, such as the purchase of machines, furniture, or buildings. Snacks and food stuff are short-term, consumable items and thus considered revenue expenditure. The other options involve expenditures that add value to the business for a longer period and are considered capital expenditures.
Important Questions from Assets & Liabilities
The freight and insurance paid for acquiring goods or for making them saleable is ________.
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?
A trade mark is an example of ______.
