Which of the following is NOT regarded as a revenue expenditure?
Expenses incurred in connection with obtaining a license for starting a factory.
The correct answer is option 2. Expenses incurred in connection with obtaining a license for starting a factory are considered capital expenditures, not revenue expenditures. These costs are related to establishing the business and are capitalized. Revenue expenditures are day-to-day operational costs, such as legal fees for lawsuits (option 1), removal of stock (option 3), and maintenance costs for an engine (option 4), which are necessary for the normal functioning of the business.
Similar Questions
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?
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 of the following is NOT regarded as a capital expenditure?
