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:

Contract

A legally enforceable agreement between two or more parties where specific promises are made for a consideration.

Martin and Nevin

A hypothetical name, possibly referring to a partnership, company, or legal case, without a specific definition absent context.

Conditional Contract

An agreement that becomes enforceable only under specified conditions.

Assignment

The transfer of rights, duties, or property from one party to another, often used in the context of contracts or real property.