An Expenditure Which Increases the Capacity or Efficiency of a Plant

question 57

True/False

An expenditure which increases the capacity or efficiency of a plant asset or which extends the asset's life is known as a revenue expenditure.

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Definitions:

Mistake Of Value

An error made by one or both parties at the time of entering into a contract, regarding the value or worth of the subject matter of the contract.

Voidable

Refers to a contract that is valid and enforceable unless challenged and declared void by a party to the contract who is deemed to have been disadvantaged or defrauded.

Fraudulent Misrepresentation

The intentional provision of false statements or concealment of information to deceive or mislead another party.

Objective

A specific goal or aim that is intended to be achieved, often measurable and time-specific.