[amp_mcq option1=”Capital expenditure” option2=”Revenue expenditure” option3=”Deferred revenue expenditure” option4=”Contingent expenditure” correct=”option1″]<\/p>\n
The correct answer is A. Capital expenditure.<\/p>\n
Capital expenditure is an expenditure that is incurred on the purchase of fixed assets, such as land, buildings, and equipment. These assets are expected to have a useful life of more than one year and are used in the production of goods or services.<\/p>\n
Revenue expenditure is an expenditure that is incurred on the day-to-day running of a business. These expenditures are not expected to have a lasting benefit and are usually expensed in the period in which they are incurred.<\/p>\n
Deferred revenue expenditure is an expenditure that is incurred in one period but is not recognized as an expense in that period. Instead, it is deferred and recognized as an expense in a future period. This is done when the benefits of the expenditure are expected to be realized in a future period.<\/p>\n
Contingent expenditure is an expenditure that is not certain to be incurred. It is only recognized as an expense when it is probable that the expenditure will be incurred and the amount of the expenditure can be reliably estimated.<\/p>\n
In the case of a publisher, the expenditure incurred on acquiring copyrights is a capital expenditure. This is because the copyrights are expected to have a useful life of more than one year and are used in the production of goods or services.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Capital expenditure” option2=”Revenue expenditure” option3=”Deferred revenue expenditure” option4=”Contingent expenditure” 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-55818","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n