Question

When ordinary repairs are made to the broken equipment in a building, such repairs are appropriately classified as?

1) Capital Expenditure
2) Revenue Expenditure
3) Deferred Revenue Expenditure
4) Extraordinary Expenditure

Answer 1

Ordinary repairs to broken equipment in a building are classified as revenue expenditure.

Step-by-step explanation:

When ordinary repairs are made to broken equipment in a building, such repairs are appropriately classified as revenue expenditure. Revenue expenditure refers to expenses incurred to maintain or repair existing assets and maintain their functionality.