Amount paid to Management company for consultancy to reduce the working
expenses is capital expenditure if the reduced working expenses will generate long
term benefits to the entity
Answers
Answered by
4
Answer:
Amount paid or payable to management company for consultation to reduce the working expenses is deferred revenue expenditure. Such expenditure gives long terms benefit to the business entity, and it cannot be realised in the market directly.
Similar questions
India Languages,
5 months ago
Hindi,
5 months ago
Accountancy,
5 months ago
Biology,
10 months ago
Math,
10 months ago
Science,
1 year ago
Chemistry,
1 year ago