Question:
Cost incurred for the maintenance of a shop is considered as:
Cost incurred for the maintenance of a shop is considered as:
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Routine expenses like repairs or maintenance are classified as Revenue Expenditure and do not add to the asset’s value.
Updated On: Dec 18, 2024
- Loss
- Gain
- Capital Expenditure
- Revenue Expenditure
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The Correct Option is D
Solution and Explanation
The maintenance cost of a shop is a routine expense that does not enhance the asset’s value or lifespan. It is treated as a Revenue Expenditure, which is debited to the income statement for the accounting period.
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