Multiple choice

Rs. 2,500 spent on the overhauling on purchase of second hand machinery is

  1. capital expenditure

  2. revenue expenditure

  3. deferred revenue expenditure

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Capital expenditure is money invested by a company to acquire or upgrade fixed, physical, non-consumable assets, such as buildings and equipment or a new business.

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