Question

Hire charges of a special machine
20,500
1)Revenue expenditure
2)Capital expenditure
3)Deferred revenue expenditure
4)Revenue Receipt​

Answer 1

Answer:

3)Deferred revenue expenditure

Answer 2

Option "2" is the correct answer i.e., capital expenditure.

• Hiring charges of the special machine is an example of capital expenditure.

• A capital expenditure is basically an amount expended to acquire or meaningfully improve the capacity or competencies of a long-term asset for example equipment or buildings.  

• Typically, the cost is documented in a balance sheet account that is stated under the heading of Property, and Equipment.

Hope it helped...