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Commerce · Q398

Accounting

Graduate and Post Graduate · Commerce · question 398

Q398

The basic consideration(s) in distinction between capital and revenue expenditure is/are

A.
Nature of business
B.
Effect on revenue generating capacity of the business
C.
Purpose of expenses
D.
All of the above
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
The basic considerations in distinction between capital and revenue expenditure are Nature of business, Effect on revenue generating capacity of the business and Purpose of expenses.