Rs.5000 spent on maintenance of computer is
A. Deferred capital expenditure
B. Capital expenditure
C. Revenue expenditure
D. None of the above
Answer: Option C
Solution(By Examveda Team)
Rs.5000 spent on maintenance of computer is Revenue expenditure. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place.This Question Belongs to Commerce >> Accounting
Join The Discussion
Comments ( 1 )
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
why should maintenance of computer is a revenue expenditure