Expenditure incurred on erecting machinery is ________________.

Revenue Expenditure

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Capital 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 B
Capital Expenditure

Expenditure incurred on erecting machinery is a capital expenditure.

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Similar questions

Q. Heavy expenditure incurred on advertisement at the time of introducing a new product is a Deferred Revenue Expenditure.

Q. The adjustment entry to write off deferred revenue expenditure is?

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.

Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure.
(a) Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable.
(b) Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order.
(c) Registration fees paid at the time of purchase of a building.
(d) Expenditure incurred in the maintenance of a tea garden which will produce tea after four years.
(e) Depreciation charged on a plant.
(f) The expenditure incurred in erecting a platform on which a machine will be fixed.
(g) Advertising expenditure, the benefits of which will last for four years.

Q. Which of the following is a deferred revenue expenditure?

Q. Select the most appropriate alternatives from those given below and rewrite the statements :

Heavy advertising expenditure for launching a new product is called as ______.
a) Capital Expenditure
b) Revenue Expenditure
c) Deferred revenue expenditure
d) None of these

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Expenditure incurred on erecting machinery is ________________.

The correct option is B Capital Expenditure Expenditure incurred on erecting machinery is a capital expenditure.

The correct option is B
Capital Expenditure

Expenditure incurred on erecting machinery is a capital expenditure.