Expenditure incurred by a publisher for acquiring copyrights is a ________.

Capital Expenditure

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Revenue Expenditure

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Deferred Revenue Expenditure

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None of the Above

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Solution

The correct option is A Capital Expenditure
Fixed assets can be classified as tangible and intangible fixed assets. Copy rights, patents are the example of intangible fixed assets. Expenditure on acquiring copy rights are going to give benefits to the business for a longer time, hence to be capitalized.

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