Multiple choice

Wages of Rs. 2600, paid to a worker, to produce a tool, for use in the factory, is a

  1. deferred revenue expenditure

  2. revenue rxpenditure

  3. capital rxpenditure

  4. none of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 This is a capital expenditure, since an asset is produced, by way of this tool.. The expense by which an asset is acquired, is a capital expenditure.

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