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Commerce · Q257

Accounting

Graduate and Post Graduate · Commerce · question 257

Q257

Cost incurred for the maintenance of shop is considered as

A.
Deffered expense
B.
Capital expenditure
C.
Revenue expenditure
Answer
D.
Preliminary expense

Answer: Option C

Solution

Answer: Option C
Solution:
Cost incurred for the maintenance of shop is considered as Revenue expenditure. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place.