Purchase of furniture for the exclusive use of an employee is a __________.
Purchasing furniture for the use of an employee is a capital expenditure because it acquires a fixed asset that yields benefits over multiple accounting periods. Revenue…
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Purchase of furniture for the exclusive use of an employee is a __________.
Answer and explanation
Correct answer B
Purchasing furniture for the use of an employee is a capital expenditure because it acquires a fixed asset that yields benefits over multiple accounting periods. Revenue expenditure and prepaid expenditure relate to current or advance operating expenses, while deferred revenue expenditure refers to a revenue outlay whose benefit is spread over several years.
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Andhra Pradesh SET (APSET)