Question

Expenses incurred for putting an asset into a working condition. Identify the type of expenditure.

Options

• Revenue Expenditure

• Capital Expenditure

• Revenue Receipts

• Capital Receipts

Answer 1

Capital Expenditure

Explanation:

Expenses to bring an asset into working condition create or enable a long‑term asset and yield benefits beyond the current year, so they are capitalised (treated as capital expenditure).