Accounting · Capital and Revenue Expenditure
Which of the following items is NOT a capital expenditure?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Fees paid to lawyers for vetting title deeds of land purchased
- 2Amount spent on obtaining a licence for running a bar and restaurant
- 3Amount spent on replacing a worn-out part of machinery✓
- 4Cost of demolishing temporary structures erected on the site during construction of a residential colony
Correct answer
Amount spent on replacing a worn-out part of machinery
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