Question

Insurance expenses paid to bring an equipment from the place of purchase to the place of installation is a type of ____________.

• A. Revenue expenditure
• B. Capital expenditure
• C. Deferred revenue expenditure
• D. Operating expense

Answer 1

The correct option is B Capital expenditure

Expenses paid to bring any assets to its installation location are treated as capital expenditure and to be added with the value of assets.

Insurance premium paid to bring the equipment from the place of purchase to the place of installation is a capital expenditure.