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Commerce · Q2519

Accounting

Graduate and Post Graduate · Commerce · question 2519

Q2519

An expenditure is treated as capital nature, when:

A.
the receiver of the amount is going to use it for the purchase of fixed assets
B.
it increases the quantity of fixed assets
Answer
C.
it is paid for meeting the normal expenses of the business
D.
it decreases the quantity of other assets

Answer: Option B

Solution

Answer: Option B
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