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प्रश्न
Expenses incurred to repair a second-hand machine, purchase by the firm, to make it usable are treated under which expenditure?
पर्याय
Revenue
Capital
Deferred revenue
Capital loss
MCQ
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उत्तर
Capital
Explanation:
Expenditure incurred for the extension of or improvement in fixed assets is also capital expenditure. Such expenditure e.g. over hauling of second hand machinery, etc. helps to increase the profit earning, capacity of business by increasing output or reducing costs.
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