Question

Which of the following statement is true?
(a) Capital Expenditure gives benefits for short period of time
(b) Revenue Expenditure gives benefits for long period of time
(c) Office Premises purchased is Capital Receipt
(d) Rent paid is Revenue Expenditure

Answer 1

Answer:

the correct answer is

option b) Revenue Expenditure gives benefits for long periods of time ⏲

I hope this answer will help you mark me as a brainly.

Answer 2

Rent paid is revenue expenditure is the true statement. (Option d)

• Capital expenditures are incurred on fixed assets whose benefits are received over many years.
• Revenue expenditures are the ongoing expenses of a business that reduce short-term liabilities.
• Office premises purchased is a capital expenditure. It is of a long-term nature.
• Rent is to be paid regularly and therefore, is a revenue expenditure. It is of a short-term nature.