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Classify Each of the Following Expenditures

Question 41

Matching

Classify each of the following expenditures:

Premises:
Installation costs for a new machine
Major overhaul to extend the useful life of a vehicle by three years
Ordinary recurring repairs to keep the machinery in good working order
Painting
Responses:
Revenue expenditure (RE)
Capital expenditure (CE)

Correct Answer:

Installation costs for a new machine
Major overhaul to extend the useful life of a vehicle by three years
Ordinary recurring repairs to keep the machinery in good working order
Painting
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