RE vs CE Q1

Overhaul expenses of second-hand machinery purchased are Revenue Expenditure.

• True

• False

Money spent to reduce working expenses is Revenue Expenditure.

• True

• False

Legal fees to acquire property is Capital Expenditure.

• True

• False

Amount spent as lawyer’s fee to defend a suit claiming that the firm’s factory site belonged to the plaintiff’s land is Capital Expenditure.

• True

• False

Amount spent for replacement of worn out part of machine is Capital Expenditure.

• True

• False

Expense incurred on the repairs and white washing for the first time on purchase of an old building are Revenue Expenses.

• True

• False

Expenses in connection with obtaining a license for running the cinema is Capital Expenditure.

• True

• False

Amount spent for the construction of temporary huts, which were necessary for construction of the Cinema House and were demolished when the cinema house was ready, is Capital Expenditure.

• True

• False