Question discussion

Expenditure on the purchase of machinery for use in the business is classified as

2345Medium DSSSB TGT Computer Science 0 replies

Expenditure on the purchase of machinery for use in the business is classified as

  • Adrawings
  • Brevenue expenditure
  • Cdeferred revenue expenditure
  • Dcapital expenditure
Correct answer: D

Explanation

Machinery gives benefits for several years and increases the earning capacity of the business, so its cost is a capital expenditure.

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