Q380
Legal expenses incurred on a suit for breach of contract to supply goods is a
A.
Capital expenditure
B.
Deferred Revenue expenditure
C.
Revenue expenditure
AnswerD.
Both 'b' and 'c'
Answer: Option C
Solution
Answer: Option C
Solution:
Legal expenses incurred on a suit for breach of contract to supply goods is a Revenue expenditure. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place.