Accounting for IGCSE & O level - Accounting Procedures (Section 27 - No. 29)
Which of the following items is most likely to be considered a revenue expenditure?
The cost of a new building.
The cost of replacing the engine in a delivery truck.
The cost of repairing a machine.
The cost of purchasing a new machine.
Explanation
Repairs are generally recurring expenses. Replacing the engine would be capital.
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