[amp_mcq option1=”Revenue expense” option2=”Capital expenditure” option3=”General expense” option4=”Deferred revenue expenditure” correct=”option2″]<\/p>\n
The correct answer is B. Capital expenditure<\/strong>.<\/p>\n Capital expenditure is an expenditure incurred on the purchase of fixed assets, such as land, buildings, and equipment. These assets are used in the production of goods or services and are expected to have a useful life of more than one year.<\/p>\n Revenue expenditure is an expenditure incurred on the day-to-day running of a business, such as salaries, rent, and utilities. These expenses are not expected to have a lasting benefit to the business and are therefore written off in the period in which they are incurred.<\/p>\n General expenses are expenses that are not directly related to the production of goods or services, such as marketing and administration costs. These expenses are usually allocated to the various departments of a business based on the amount of resources they use.<\/p>\n Deferred revenue expenditure is an expenditure that is incurred in one period but is not recognized as an expense in that period. This is because the benefits of the expenditure are expected to be realized in future periods. For example, if a business purchases a piece of equipment that will be used for five years, it will only recognize one-fifth of the cost of the equipment as an expense in the first year.<\/p>\n I hope this helps! Let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Revenue expense” option2=”Capital expenditure” option3=”General expense” option4=”Deferred revenue expenditure” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-46633","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n