Start learning 50% faster. Sign in now
Get Started with ixamBee
Start learning 50% faster. Sign in nowa. False: The nature of business is a very important criteria in separating an expenditure between capital and revenue. For example- For a trader dealing in furniture, purchase of furniture is revenue expenditure but for any other trade, the purchase of furniture should be treated as capital expenditure and shown in the balance sheet as asset.. b. False: Expenditure incurred for major repair of the asset so as to increase its productive capacity is capital in nature. c. False: Legal expenses incurred to defend a suit claiming that the firm's factory site belongs to the plaintiff is maintenance expenditure of the asset. By this expense, neither any endurable benefit can be obtained in future in addition to that what is presently available nor the capacity of the asset will be increased. Maintenance expenditure in relation to an asset is revenue expenditure. d. False: Amount spent for replacement of any worn-out part of a machine is revenue expense since it is part of its maintenance cost. e. True: Since temporary huts were necessary for the construction, their cost should be added to the cost of the cinema hall and thus capitalized.
When was the Security Printing and Minting Corporation of India Limited established?
Consider the following statement about Capital Budget:
I. Capital Receipts
II. Capital Payments
III. Capital Spending
Whi...
The committee that recommended setting up Small Finance Banks in India was headed by –
What is the average rating increase for financial centers in the Middle East & Africa region in GFCI 35?
In which year was the Small Industries Development Bank of India (SIDBI) established?
Which of the following is true regarding the Reserve Bank of India's prudential norms for income recognition, asset classification, and provisioning fo...
Which of the following describes an arrangement where one party grants another party the right to use trade name?
The whole is greater than the sum of the parts is emphasised in which of the following theory of management thought?
Which is the mandatory process of identifying and verifying the client's identity when opening an account and periodically over time?
Which among the following is NOT a constituent of Tier-II capital of banks according to BASEL Accord?