Question

An extension of railway tracks in the factory area;​

Answer 1

Answer:

Expenses incurred for extension of railway tracks in the factory area should be treated as a Capital Expenditure because it will yield benefit for more than one accounting period.

(ii) Wages paid to machine operators should be treated as a Revenue Expenditure as it will yield benefit for the current period only.

Explanation:

HOPE YOU LIKE IT

FOLLOW ME