Expenses of the following nature are treated as a Revenue expenses except -
A)Expenses for day to day running of the business .
B)Putting the new asset in working condition .
C)Depreciation .
D)Purchase of raw material

Question

Quizplus · Accepted Answer

Expenses for putting a new asset in working condition are considered capital expenses because they are incurred to bring an asset into a usable state, thereby providing benefits over several years, unlike revenue expenses which are incurred for the day-to-day operations of a business.

Expenses of the Following Nature Are Treated as a Revenue