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Commerce · Q268

Accounting

Graduate and Post Graduate · Commerce · question 268

Q268

Money spent to acquire or upgrade physical assets is known as

A.
Revenue expense
B.
Capital expense
Answer
C.
Administrative expense
D.
Operating expense

Answer: Option B

Solution

Answer: Option B
Solution:
Money spent to acquire or upgrade physical assets is known as Capital expense, as the asset is expected to be utilised in a long run.