Renewal fee for patents is a:

Capital expenditure

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Revenue expenditure

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Deferred revenue expenditure

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Development expenditure

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Solution

The correct option is B Revenue expenditure
Expenditure incurred annually on renewal of patent is a Revenue expenditure. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place.

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Similar questions

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

Group A		Group B
1.	Deficit budget	a.	Tax revenue
2.	Government budget	b.	Capital receipts
3.	Fees, license fee	c.	Irrigation
4.	Borrowings	d.	Non-tax revenue
5.	Plan expenditure	e.	One year
		f.	Government expenditure > Government revenue
		g.	Two years

Distinguish between revenue expenditure and capital expenditure.

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