GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Acquisition of land, building, machinery etc.
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Amount spent on increasing the Sitting accommodation in picture hall.
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Expenditure incurred for acquiring the right to carry on a business, for example, patent rights, copyright, goodwill.
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All of the above
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Detailed explanation-1: -Capital expenditures are long-term investments, meaning the assets purchased have a useful life of one year or more. Types of capital expenditures can include purchases of property, equipment, land, computers, furniture, and software.
Detailed explanation-2: -When companies make a revenue expenditure, the expense provides immediate benefits, rather than long term ones. Examples of revenue expenditure are wages or salaries paid to factory workers, machine Oil to lubricate. Hence option B is not the capital expenditure.
Detailed explanation-3: -Answer: Any expenditure which is incurred in obtaining or increasing the value of a fixed asset is known as capital expenditure. Similarly, the total amount spent on the Plant and Machinery, Land and Building, Furniture and fixtures etc., Such expenditure yields benefit over a long period. What is Revenue Expenditure?