Advertisements
Advertisements
Question
Classify the following into capital expenditure and revenue expenditure.
Money spent on incorporation of a company.
Classify
Advertisements
Solution
Capital Expenditure
Explanation:
Preliminary/incorporation costs create a long‑term benefit (they are non‑recurring and relate to setting up the business), so treated as capital.
shaalaa.com
Is there an error in this question or solution?
Chapter 6: Capital and Revenue Expenditure/Income - QUESTION BANK [Page 92]
