Multiple choice

Which of the following is revenue expense?

  1. Overhaul expense on second hand machinery purchased.

  2. Legal fees paid for purchasing building.

  3. Amount spent on temporary huts for construction of building.

  4. Repair charges for machinery.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Repair charges paid for keeping the machinery workable are revenue expense. All the others are capital expenses.

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