Q.11 Addition of a new wing to the
factory Rs 40,000
A. O Revenue expenditure
B.
Revenue receipt
C.
Deferred revenue expenditure
D. Capital expenditure
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4
Answer:
capital expenditure. Bcoz, the benefit obtained by increasing a wing in factory will be for more than one accounting period
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Capital expenditure
Capital expenditures refer to reserves that are utilized by an organization for the buy, improvement, or upkeep of long period resources for work on the proficiency or limit of the organization. Long haul resources are normally physical, fixed, and non-consumable resources like property, hardware, or framework, and that have a valuable existence of more than one bookkeeping period. Capital expenditure ordinarily substantially affects the present moment and long haul monetary remaining of an association.
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