Capital expenditure is an expenditure which

✅ B. Reduction in operating costs

Option A : Increase in working capacity of an asset Option B : Reduction in operating costs Option C : Replacing damaged parts of an asset Option D : Both and Correct Answer : Both and above Read more

✅ C. Accounts receivable

Option A : Cash Option B : Bank balance Option C : Accounts receivable Option D : Cash reserve Correct Answer : Accounts receivable Read more

✅ B. For mutual financial accommodation

Option A : Genuine trade reasons Option B : For mutual financial accommodation Option C : To help augment money supply Option D : All the three Correct Answer : For mutual financial accommodation Read more

✅ A. Inventory system

Option A : Inventory system Option B : Survey system Option C : Annuity system Option D : Insurance Correct Answer : Inventory system Read more

✅ D. Postage & Stamps

Option A : Opening Stock Option B : Carriage inward Option C : Wages & Salary Option D : Postage & Stamps Correct Answer : Postage & Stamps Read more

✅ B. Differential costs

Option A : Relevant costs Option B : Differential costs Option C : Target costs Option D : Sunk costs Correct Answer : Differential costs Read more

✅ C. Trading A/c

Option A : Profit and Loss A/c Option B : Capitalized with work in progress Option C : Trading A/c Option D : Shown in Balance Sheet Correct Answer : Trading A/c Read more

✅ C. Balance Sheet only

Option A : Trading A/c and Balance Sheet Option B : Profit and Loss A/c Option C : Balance Sheet only Option D : Trading A/c only Correct Answer : Balance Sheet only Read more