Amount spent for acquiring patents right is a ________________.

Capital expenditure

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Deferred revenue expenditure (if the amount is large)

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Revenue expenditure (even though the amount is large)

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Debit to profit and Loss account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Capital expenditure
Capital expenditure - Capital expenditure means money spent by a business or organisation on acquiring or maintaining fixed assets, such as land, building, vehicles, equipment etc. Fixed assets also include intangible assets such as patent rights, goodwill, copyright etc.
Therefore, amount spent for acquiring patents right is a capital expenditure.

Suggest Corrections

Similar questions

Deferred Revenue Expenditure A/c To Profit & Loss A/c	Dr.
Expense A/c To Profit & Loss A/c	Dr.
Profit & Loss A/c To Provision for Expense A/c	Dr.
Profit & Loss A/c To Deferred Revenue Expenditure A/c	Dr.

Cost of obtaining a license to carry out business is a capital expenditure or revenue expenditure?

The pie chart shows the expenditure of a sports school on various sports in a particular year.

If the total amount spent is ₹ 7,20,000/-, then the amount spent on basketball is _____.

List-I	List-II
I. Carriage charges a new machine purchased for factory	(a) Revenue receipt
II. Legal expenses incurred in defending a case of violation of a provision of Factories Act	(b) Revenue expenditure
III. Grant-in-aid received from the Government for the construction of a building	(c) Deferred revenue expenditure
IV. Amount received for a part of the office building sublet	(d) Capital expenditure
	(e) Capital receipt

Join BYJU'S Learning Program