CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Expense Side of Statement of Profit and Loss

Which of the ...

Question

Which of the following is/are not example of capital expenditure?

A

Purchases of land & buildings

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Purchases of machinery

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Payment of salary

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

D

All of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Payment of salary
Capital expenditure is the money a company spends to buy, maintain or improve its fixed assets. With payment of salary there is no improvement in fixed assets. Salary paid is revenue expenditure.

Suggest Corrections

thumbs-up

0

Similar questions

Q. Which of the following is/ are not example of capital expenditure__________________________.

Q. Which of the following is not an example of capital expenditure?

Q. Consider the following pairs of factors of production and their respective revenue sources
1. Enterpreneur - Profit
2. Land - Wages
3. Capital - Rent
4. Labour - Wages

Which of the above pairs are correctly matched?

Q. Which of the following is an example of capital expenditure?

Q. Which of the following is an example of working capital?

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Statement of Profit and Loss

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Expense Side of Statement of Profit and Loss

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon