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a. False: The nature of business is a very important criteria in separating an expenditure between capital and revenue. For example- For a trader dealing in furniture, purchase of furniture is revenue expenditure but for any other trade, the purchase of furniture should be treated as capital expenditure and shown in the balance sheet as asset.. b. False: Expenditure incurred for major repair of the asset so as to increase its productive capacity is capital in nature. c. False: Legal expenses incurred to defend a suit claiming that the firm's factory site belongs to the plaintiff is maintenance expenditure of the asset. By this expense, neither any endurable benefit can be obtained in future in addition to that what is presently available nor the capacity of the asset will be increased. Maintenance expenditure in relation to an asset is revenue expenditure. d. False: Amount spent for replacement of any worn-out part of a machine is revenue expense since it is part of its maintenance cost. e. True: Since temporary huts were necessary for the construction, their cost should be added to the cost of the cinema hall and thus capitalized.
What percentage of the world's cotton cultivation area does India hold?
In May 2021, which country successfully achieved landing of unscrewed spacecraft on Mars?
NABARD, which stands for National Bank for Agriculture and Rural Development, is an apex development bank in India. NABARD celebrated its foundation day on
Which of the following is not a basic principle of food preservation?
During germination, seeds absorb water by
When was the Cotton Corporation of India (CCI) established?
Phytosiderophores have high affinity to
For determination of soil microbial biomass, carbon extracting agent used is
Irrigation method that is suitable for undulating topography is ___
Bordeaux mixture was invented by