UGC NET
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Vikas Asked a Question
May 11, 2021 2:03 pmpts 30 pts
  • UGC NET
  • Commerce

Which one of the following statements is not true ? (1) an expenditure intended to benefit current year is revenue expenditure. (2) amount paid for acquiring

Which one of the following statements is not true ? (1) An expenditure intended to benefit current year is revenue expenditure. (2) Amount paid for acquiring goodwill is capital expenditure. (3) Wages paid for installation of a new machine is usually debited to wages account. (4) Revenue expenditure is not intended to benefit future period.
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  • Priya gulani Best Answer
    no, fourth option is true as revenue expenditure is not intended to benefit the future period. option 3 is false as by doing so you will commit error of principle answer should be ...
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  • Rucha rajesh shingvekar thankyou
    Revenue expenditure are those which give the benefit to the business in the short period of time i.e. a year. These are directly charged to the profit & loss account of that partic...
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  • Rucha rajesh shingvekar
    But as per above explanation correct answer is option (3)
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  • Vikas
    But answer is Option 4
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  • Rucha rajesh shingvekar
    Correct Option is (3) Wages paid for installation of a new machine is usually debited to wages account. It is Part of Cost of Machine and Debited to Machinery account.
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    Vikas
    as per the answer key Option 4, This Question is appearing in June 2018
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