Question

Expenses incurred for construction of a building are classified as ______.

विकल्प

• Revenue Expenditure

• Capital Expenditure

• Deferred Revenue Expenditure

• Miscellaneous Expenditure

Answer 1

Expenses incurred for construction of a building are classified as Capital Expenditure.

Explanation: 

Capital expenditure refers to an investment that has long-term benefits beyond the present year. Non-recurring expenditures lead to the acquisition of permanent assets.