English

State whether the following expense is Capital or Revenue. Fire insurance premium on premises.

Advertisements
Advertisements

Question

State whether the following expense is Capital or Revenue.

Fire insurance premium on premises.

Very Short Answer
Advertisements

Solution

Revenue Expenditure

Reason:

Regular premium payments are made on an already-existing asset.

shaalaa.com
  Is there an error in this question or solution?
Chapter 6: Capital and Revenue Expenditure/Income - PRACTICAL PROBLEMS [Page 91]

APPEARS IN

Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 6 Capital and Revenue Expenditure/Income
PRACTICAL PROBLEMS | Q 2. (ix) | Page 91
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×