Distinguish between capital and revenue expenditure and state whether the following statements are items of capital...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure (a) Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable. (b) Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order. (c) Registration fees paid at the time of purchase of the building. (d) Expenditure incurred in the maintenance of a tea garden which will produce tea after four years. (e) Depreciation charged on a plant. (f) The expenditure incurred in erecting platform on which a machine will be fixed. (g) Advertising expenditure, the benefits of which will last for four years. Distinguish between capital and revenue expenditure and state whether the following statements are items of capital or revenue expenditure (a) Expenditure incurred on repairs and whitewashing at the time of purchase of an old building in order to make it usable. (b) Expenditure incurred to provide one more exit in a cinema hall in compliance with a government order. (c) Registration fees paid at the time of purchase of the building. (d) Expenditure incurred in the maintenance of a tea garden which will produce tea after four years. (e) Depreciation charged on a plant. (f) The expenditure incurred in erecting platform on which a machine will be fixed. (g) Advertising expenditure, the benefits of which will last for four years.
Expert Answer:
Answer rating: 100% (QA)
When the benefit of expenditure is to be received over a series of accounting years it is termed as ... View the full answer
Related Book For
Principles of Risk Management and Insurance
ISBN: 978-0132992916
12th edition
Authors: George E. Rejda, Michael McNamara
Posted Date:
Students also viewed these accounting questions
-
A champion basketball player with, of mass 100 kg, can leap a vertical distance of 1.2 m, in a jump lasting 0.3 s. Calculate the speed of the player as they leave the ground, and the average force...
-
Michael Hauck claimed that he was discharged by his employer, Sabine Pilot Service, because he refused its direction to perform the illegal act of pumping the bilges of the employers vessel into the...
-
Michael owns a small plane that he flies on weekends. His insurance agent informs him that aircraft are excluded as personal property under his homeowners policy. As an insured, he feels that his...
-
Randy, Inc., can issue 3-month commercial paper with a face value of $1,500,000 for $1,450,000. Transaction costs will be $1,500. The effective annualized percentage cost of the financing, based on a...
-
A consumer advocate claims that 80 percent of cable television subscribers are not satisfied with their cable service. In an attempt to justify this claim, a randomly selected sample of cable...
-
A steam pipe 200 mm in diameter passes through a large basement room. The temperature of the pipe wall is 500?C, while that of the ambient air in the room is 20?C. Determine the heat transfer rate by...
-
In 2004, Jui-Chen Lin, a citizen of China, entered into an agreement with Robert Chiu and Charles Cobb, citizens of the United States, to form an LLC to acquire and operate a fast-food restaurant in...
-
Comparison of projects, no income taxes (CMA, adapted) New Bio Corporation is a rapidly growing biotech company that has a required rate of return of 10%. It plans to build a new facility in Santa...
-
Engineers at electronic company use special wire to manufacture fuzzy logic circuit boards. The wire comes in 1,260 foot rolls that cost $2,700 each. Each board requires 4 1/5 feet of wire. How many...
-
Pasqual Melo is employed by a public corporation. On January 1, 2019, she was given an option to purchase 1,000 shares of the public corporation for $8 per share (the option extended for two years)....
-
In the 2016 presidential election, most Americans were inundated with poll results, all of which reported a margin of error. Discuss what a margin of error means for poll results. What does it tell...
-
3. Firm ABC is going to pay an annual dividend of $2.00 per share. Management just announced that future dividends will increase by 10 percent annually in the first three years and 5 percent annually...
-
Suppose there is a 5.5 x 106 N/C electric field in some region.
-
After Niles died, his employer paid his estate $2,000 of salary still owed to Niles. The board of directors of Niles employer also decided to give his widow Daphne the $10,000 it expected to give to...
-
Assume a processor with 3 DDR DRAM channels of width 64 bit, operating at 1.4 GHz. All channels support up to 4 ranks of DIMMS. A DIMM contains multiple chips with the following properties. Banks...
-
Do the following contracts need to be in writing to be enforceable? Explain why or why not. A contract whereby the president of NewCo. Gives a personal guarantee (i.e., uses personal assets as...
-
A clutch manufacturer has called you to consult on a new design being considered. The system essentially consists of two rotating disks as shown. The axial loading will be about 2000 N, and the...
-
Where are the olfactory sensory neurons, and why is that site poorly suited for their job?
-
Ben owns an appliance and furniture store and is insured under a commercial general liability (CGL) policy written on an occurrence basis. Explain whether Ben's CGL policy would provide coverage for...
-
Explain the basic objectives in the settlement of claims.
-
Describe the steps involved in the settlement of a claim.
-
You are calculating the estimated time to completion for a project of 12 months duration and a budgeted cost of $500,000. Assuming the following information, calculate the Schedule Performance Index...
-
Go to www.brighthubpm.com/monitoring-projects/51982-understanding-the-s-curve-theory-for-project-management-monitoring/ and read the article on the multiple uses of project S-curves. What does the...
-
You had planned to construct a series of eight traffic roundabouts in your town, with each roundabout costing $150,000. Your goal was to complete the project during the four (4) months of good...
Study smarter with the SolutionInn App