Question

If Carriage and Freight expenses are paid on the transportation of a newly acquired fixed asset, these are treated as capital expenditure.

पर्याय

• True

• False

Answer 1

True

Explanation:

Carriage and freight for transporting a newly acquired fixed asset are capitalised as part of the asset’s cost (not charged to profit immediately). They increase the asset’s acquisition cost and are therefore treated as capital expenditure.