Which one of the following is a revenue expenditure?
Rs.1000 spent on painting the factory.
The correct answer is option 2. Revenue expenditures are those which are incurred for the day-to-day running of the business, and painting the factory is a regular expense that is necessary for maintaining the premises. The other options involve capital expenditures or one-time costs.
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?
A trade mark is an example of ______.
