Question

an expense incurred to maintain a machine in working condition is capital or revenue expenditure?​

Answer 1

Answer:

it is revenue expenditure.

Explanation:

because it does not create asset or do not reduce liability

Answer 2

Answer:

All of these costs are capital-related.

Explanation:

As a result, it qualifies as a capital expense because it is incurred to get the machine up and running.

(ii) All costs incurred up until the day the facility is put to use must be capitalised when a new building is purchased or erected.

So, the cost of painting a newly built (or acquired) facility qualifies as a capital expense.

(iii) Because transportation costs are common company expenses of a recurring character, they qualify as revenue expenditures.

(iv) Legal fees associated with buying land are considered a capital expense. This is due to the need that all costs incurred prior to the day that land is put to use be capitalised.

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