Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Which of the following is a Revenue Expenditure?

(a) Construction of Factory shed.

(b) Sales Tax paid in connection with purchase of Office Equipment.

(c) Legal Expenses in connection with defending a title to firm’s property.

(d) License fees

Revenue Management Accounting Increasing Revenue Leadership Management
user-image
Question added by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date Posted: 2015/08/09
Upvote (0) Views (5) Followers (2) Answers (2) Report Question
Write an Answer
Register now or log in to answer.
Abdur Rahim
by Abdur Rahim , Head Accountant , MAPCo. LLC

C is the correct answer as legal expenses in connection with defending a title will be expensed each year.In A the construction of factory shed will be capitalised and booked as an assetIn B Sales tax will be added to the cost of office equipment and will be capitalized. In D license fee will be capitalized  

Mohammed Asim Nehal
by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

Correct answer is (c) Legal Expenses in connection with defending a title to firm’s property.

Write Your Answer
More Questions Like This