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Examveda

Which of the following enhances the earning capacity of an asset?

A. Reduction in operating costs

B. Increase in working capacity of an asset

C. Replacing damage parts of an asset

D. Both 'b' and 'c'

Answer: Option D

Solution(By Examveda Team)

Increase in working capacity of an asset and Replacing damage parts of an asset enhances the earning capacity of an asset.

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Comments ( 1 )

  1. Jay Bee
    Jay Bee :
    2 years ago

    Enhancement of earning capacity of an asset :- Capital expenditure
    Replacement of damaged parts of an asset :- Revenue Expenditure
    This contradict.
    Anybody????

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