Multiple choice

Directions: Choose the correct option for the given question.

What is the renewal fees paid for a patent right?

  1. Capital expenditure

  2. Revenue expenditure

  3. Deferred revenue expenditure

  4. Development expenditure
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Renewal fees for patent rights are recurring expenses to maintain existing rights, not creating new assets or enhancing capacity. Revenue expenditure includes routine operating costs that benefit the current period only. Capital expenditure creates new assets, while development expenditure relates to research activities.

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