Question

Expenses on a Foreign Tour to purchase a machinery is _________________.

• A. Capital Expenditure
• B. Reserve Expenditue
• C. Deferred Revenue Expenditure
• D. Prepaid Expenses

Answer 1

The correct option is A Capital Expenditure

All expenses which incur for acquiring capital asset are classified as capital expenditure.

Expenses on a foreign tour to purchase a machinery classified as capital expenditure as it incurred for acquiring capital asset.