GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Changing a small component of a machine to maintain its operating efficiency.
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Expenditure by way of maintenance that has increased productivity.
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Complete overhaul of a machine, spending around 20 % of its value.
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Repair of a gearbox in a car that has enhanced its operational life.
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Detailed explanation-1: -Routine repairs of plant and machinery are regarded as revenue expenditure and they are charged to the Repairs and maintenance expense account.
Detailed explanation-2: -purchase and sale of machinery is not a day to day activity unless it is a business in machinery dealing and hence, it is not a revenue expenditure.
Detailed explanation-3: -Repair and Maintenance of the Assets. Employee Salaries. Utility Bills. Property Rents. Selling Costs. Direct Expense. Indirect Expenses. Increased Proficiency. More items •25-Nov-2022
Detailed explanation-4: -Salaries and employee wages. Any overhead expense, such as salaries for the corporate office, which typically fall under selling, general, and administrative expenses (SG&A) Research and development (R&D) Utilities and Rent. Business travel. Property taxes.