[amp_mcq option1=”Repairs on second hand asset purchased to put it into working condition” option2=”Preliminary expenses” option3=”Cost of Issuing shares and debentures” option4=”Legal expenses to defend a suit filed by the competitor” correct=”option1″]<\/p>\n
The correct answer is: A. Repairs on second hand asset purchased to put it into working condition.<\/p>\n
Revenue expenditure is an expense that is incurred in the ordinary course of business and is not of a capital nature. It is usually expensed in the period in which it is incurred.<\/p>\n
Preliminary expenses are expenses incurred in connection with the formation of a company. They are usually capitalized and amortized over a period of years.<\/p>\n
The cost of issuing shares and debentures is a capital expenditure. It is the cost of raising capital and is usually capitalized and amortized over the life of the securities.<\/p>\n
Legal expenses to defend a suit filed by a competitor are a revenue expenditure. They are incurred in the ordinary course of business and are usually expensed in the period in which they are incurred.<\/p>\n
Here is a more detailed explanation of each option:<\/p>\n
[amp_mcq option1=”Repairs on second hand asset purchased to put it into working condition” option2=”Preliminary expenses” option3=”Cost of Issuing shares and debentures” option4=”Legal expenses to defend a suit filed by the competitor” correct=”option1″]<\/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-49336","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n