Cost of goods purchased for resale is an example of _________.

Deferred Revenue Expenditure

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Revenue Expenditure

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Capital Expenditure

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Common Expenditure

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Solution

The correct option is B Revenue Expenditure
Cost of goods purchased is a direct cost. Purchasing and selling of goods is a trading activity of the firm. All expenses incurred for the trading activities are part of revenue expenditure.

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Similar questions

Q. Treating a revenue expense as a capital expenditure is an example of __________.

Q. Match List-I(Item of expenditure/receipt) with List-II(Nature of expenditure/receipt) and select the correct answer using the codes given the lists.

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

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

From the following data, calculate Gross National Product at Market Price by:
(a) Income method
(b) Expenditure method

$\begin{matrix} 1. & Mixed income of self employed & 400 2. & Compensation of employeees & 500 3. & Private final conosumption expenditure & 900 4. & Net factor income from abroad & - 20 5. & Net indirect taxes & 100 6. & Consumption of fixed capital & 120 7. & Net domestic capital formation & 280 8. & Net exports & - 30 9. & Profits & 350 10. & Rent 11. & Interest & 150 12. & Government final consumption expenditure & 450 \end{matrix} - ----------------------------------------------------------- -$

OR

Categorise the following as final and intermediate good. Give reasons:
(a) Machine purchased by a household
(b) Machine purchased by a firm
(c) Machine purchased for resale purpose

Ram has purchased a furniture for resale as he has a furniture shop. Where the same shall be shown?

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Cost of goods purchased for resale is an example of _________.

The correct option is B Revenue ExpenditureCost of goods purchased is a direct cost. Purchasing and selling of goods is a trading activity of the firm. All expenses incurred for the trading activities are part of revenue expenditure.

The correct option is B Revenue Expenditure
Cost of goods purchased is a direct cost. Purchasing and selling of goods is a trading activity of the firm. All expenses incurred for the trading activities are part of revenue expenditure.