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.
Which constitutional amendment added the 11th fundamental duty to Article 51A of the Indian Constitution?
Which space agency has recently presented evidence of ice presence at the Moon's poles?
By what amount has the monthly nutrition support under Ni-Kshay Poshan Yojana been increased for TB patients during treatment?
Where was the 20th ASEAN-India Economic Ministers' Meeting held?
Which Indian railway station received the 'Green Railway Station Certificate' in January 2023, achieving the highest Platinum rating?
In 2021, which two states in India had the lowest forest cover with respect to their total geographical area?
Which country has emerged as India's third largest exports destination during 2022-23, after the US and UAE?
Who achieved the milestone of becoming India's youngest Olympic boxing referee at the Paris 2024 Olympics?
If the court finds that a person is holding office but is not legally entitled to hold that office, the judiciary restricts that person from a acting as...
Which country became the first in modern history to lose all its glaciers as of May 2024?