The Amount Spent for Construction of Temporary Hearts
The amount spent for the construction of temporary hearts necessary for building a house, which are demolished when the cinema house is ready, is considered:
(a) Capital Expenditure
(b) Revenue Expenditure
(c) Operational Expenditure
(d) Deferred Expenditure
Final answer:
The amount spent for the construction of temporary hearts necessary for building a house is considered Revenue Expenditure.
Explanation:
The amount spent for the construction of temporary hearts necessary for building a house, which are demolished when the cinema house is ready, is considered Revenue Expenditure.
Revenue expenditure refers to the costs incurred in the regular running and maintenance of a business. Since these temporary hearts are demolished once the cinema house is ready, it falls under the category of revenue expenditure.
What is the category of expenditure for the amount spent on temporary hearts necessary for building a house? The amount spent on temporary hearts necessary for building a house is considered as revenue expenditure.