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متابعة

Money spent to reduce working expense:

(a) Capital Expenditure

(b) Revenue Expenditure

(c) Deferred Revenue Expenditure

(d) None of the above

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تم إضافة السؤال من قبل Shamseer KM , Accounts and Admin Payroll , KBM Group
تاريخ النشر: 2016/03/19
مستخدم محذوف‎
من قبل مستخدم محذوف‎

a) capital expenditure>>>>>>>>>>>>>>>>

georgei assi
من قبل georgei assi , مدير حسابات , المجموعة السورية

The correct answer to answer a

Ramachandrahasa V S Viryala
من قبل Ramachandrahasa V S Viryala , Senior Process Executive , Societe Generale Global Solution Centre Pvt. Ltd.

The answer depends upon the benefit, if the benefit is for one year it is a revenue expense and if the benefit is for more than one year and it is improved the usability of the asset (life or increase in inflows generated from the asset) then it is a Capital expenditure and depreciation to be provide prospectively based on the remaining life of the asset.

and if it do not improve the usability of the asset and the benefit of reduction in working expenses is more than 1 year then it can be treated as deferred revenue exp.

Gayasuddin Mohammed
من قبل Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

In my knowledge it should be option (a) Capital Expenditure....as it is your investment for future for improving margins. Thanks.

Rehan Javaid
من قبل Rehan Javaid , Finance Coordinator , Empower Contracting Co (Saudi Binladin Group)

Its deferred Revenue Expenditure as its result is long lasting. 

Muhammad Sabith
من قبل Muhammad Sabith , Accountant , SIMORA

agree with the expert answer - A

Abdul Khalique
من قبل Abdul Khalique , Finance Manager , Value Real Estate & Construction

Money spent to reduce working expenses is…..(a) Capital Expenditure

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