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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.
When was the zoological survey of India started?
The breaking up and decay of exposed rocks by temperature changes, frost action, plants, animals and human activity is called:
Rabi Crops are grown in which of the following seasons?
Ravana Phadi cave and Durga Temple at Aihole portray the architectural style of which dynasty?
Which of the following statements is NOT correct about surface tension?
Which of the following statements related to the Mughal empire in India is/are correct? Statement A: The Second Battle of Panipat marked the beginning o...
The normal temperature of the human body is ______
Who is the author of the novel “I Shall Not Hear the Nightingale”?
Which five countries have recently joined the BRICS group, and what was the occasion that marked their official membership?
What does D stands for in GDP?