Vidyalelo
Commerce · Q355

Accounting

Graduate and Post Graduate · Commerce · question 355

Q355

Rs.5000 spent on maintenance of computer is

A.
Deferred capital expenditure
B.
Capital expenditure
C.
Revenue expenditure
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
Solution:
Rs.5000 spent on maintenance of computer is Revenue expenditure. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place.