Accounting · Capital and Revenue Expenditure
Which of the following would be considered a Revenue Expenditure related to a fixed asset?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Heavy expenditure incurred on the extensive repair of an existing machine to restore its original working condition✓
- 2Expenditure incurred on the demolition of an old building to make the site ready for a new construction
- 3Compensation paid to a dismissed employee for the cancellation of an employment contract
- 4Amount spent on increasing the seating capacity of a cinema hall from 500 to 750
Correct answer
Heavy expenditure incurred on the extensive repair of an existing machine to restore its original working condition
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