Multiple choice

Cost of Rs. 1, 80, 000 for dismantling, removing and reinstalling the plant by a Cotton Mill incurred in connection with removal of works to a more suitable locality is

  1. capital expenditure

  2. revenue expenditure

  3. deferred revenue expenditure

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 Deferred revenue expenditure is the expenditure for which the payment has been made or the liability has been incurred, but which is carried forward on the presumption that it will be beneficial over the subsequent period or periods.

Keep practicing — related questions