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.
Similar Questions
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?
A trade mark is an example of ______.
Which one of the following is a revenue expenditure?
Wages paid for erection of a new plant or machinery are taken as _____.
Which of the following needs to be excluded from current assets apart from closing stock, to get the balance as liquid assets?
Important Questions from Assets & Liabilities
Which of the following needs to be excluded from current assets apart from closing stock, to get the balance as liquid assets?
Machinery account is ______.
_______ is the most liquid of all assets.
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?
