An amount of Rs. 30,000 spent on travelling expenses of the company's director's to a foreig - (a) Capital Expenditure Description: Rs. 30,000 spent on travelling expenses of the company's director's to a foreign trip for purchase of an asset to be used in the production process, is in the nature of capital expenditure as it is connected with purchase of the capital asset. - Capital and Revenue Expenditure and Receipts Interview Questions and Answers

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Question: An amount of Rs. 30,000 spent on travelling expenses of the company's director's to a foreign trip for purchase of an asset to be used in the production process. This is a: a) Capital Expenditure b) Revenue Expenditure c) Deferred Revenue Expenditure d) None of the above

Answer: (a) Capital Expenditure
Description: Rs. 30,000 spent on travelling expenses of the company's director's to a foreign trip for purchase of an asset to be used in the production process, is in the nature of capital expenditure as it is connected with purchase of the capital asset.

Category	Capital and Revenue Expenditure and Receipts Interview Questions & Answers - Exam Mode / Learning Mode
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Question: An amount of Rs. 30,000 spent on travelling expenses of the company's director's to a foreign trip for purchase of an asset to be used in the production process. This is a: a) Capital Expenditure b) Revenue Expenditure c) Deferred Revenue Expenditure d) None of the above

Answer:

(a) Capital Expenditure
Description: Rs. 30,000 spent on travelling expenses of the company's director's to a foreign trip for purchase of an asset to be used in the production process, is in the nature of capital expenditure as it is connected with purchase of the capital asset. Source: CoolInterview.com

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