Which of the Following Should Not Be Treated as a Revenue

question 89

Multiple Choice

Which of the following should not be treated as a revenue expenditure?

• A)Delivery costs on newly purchased equipment
• B)Annual fire insurance premiums on plant and equipment
• C)Repair to an elevator of a five-year-old building
• D)The purchase of a pencil sharpener for $10 used in an office

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Definitions:

Chunking

A memory technique that organizes information into manageable units or chunks, making it easier to remember.

Miller

Refers to George A. Miller, a notable psychologist best known for his theory on the limitations of short-term memory capacity, famously summarized as "the magical number seven, plus or minus two."

Chunking

A cognitive strategy for organizing information into more manageable parts or groups to enhance learning and memory recall.

Displacement

A psychological defense mechanism in which a person redirects an emotional response from the rightful recipient to another, less threatening source.