Expenditures for Plant Assets that will be used by a company

Expenditures for Plant Assets that will be used by a company for more than one year are termed Capital Expenditures Revenue e Intangible Assets @ Research & Development costs

Solution

Correct Answer (A) Capital Expenditure

Explanation

Expenditures which benefits more than one year are treated as Capital expenditures. These expenditures are done to increase Earning Potential of a company. Revenue expenses are those which are fully consumed with in the tax period such as salary, rent, etc.