Which of the following options DO NOT relate to examples of revenue expenditure? a) Repair expenses b) Insurance expense c) Installation expenses d) Overhauling expenses of second-hand machinery
Only c and d
The correct answer is option 1. Installation expenses and overhauling of second-hand machinery are capital expenditures, not revenue expenditures. Revenue expenditures are typically associated with repairs, insurance, and maintenance that do not extend the life of the asset.
Important Questions from Capital & Revenue Account
Which among the following is a capital receipt?
Which of the following statement is INCORRECT about capital expenditure?
Which among the following is a capital receipt?
Which of the following statement is INCORRECT about capital expenditure?
A company has spent Rs. 20,000 on painting of its building. It should be recorded as
