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Business Studies

Government Company and Its Features

Cost of obtai...

Question

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

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Solution

Cost of obtaining a license to carry out business is a capital expenditure.

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Q. The main purpose of the incurring capital expenditure is to __________ of the business. The main purpose of the incurring revenue expenditure is to __________ of the business.

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