CA Foundation Exam > CA Foundation Questions > Amount spent on unsuccessful patent right is ...
Start Learning for Free
Amount spent on unsuccessful patent right is a :
- a)Revenue Expenditure (Even though the amount is large)
- b)Deferred Revenue Expenditure (If the amount is large)
- c)Capital Expenditure
- d)None of theses
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Amount spent on unsuccessful patent right is a :a)Revenue Expenditure ...
Amount spent on unsuccessful patent right is a revenue expenditure as the entire amount spent is a loss with no signs of any recovery in future through any income. Hence, entire amount should be written off all at one go.
Free Test
FREE
| Start Free Test |
Community Answer
Amount spent on unsuccessful patent right is a :a)Revenue Expenditure ...
Revenue Expenditure
Explanation:
Revenue expenditure refers to expenses incurred in the normal course of business operations, which are necessary for maintaining current levels of production, sales, and profitability. These expenses are generally treated as deductible expenses and are shown on the income statement.
In this case, the amount spent on an unsuccessful patent right is a revenue expenditure. This is because:
• The expense is incurred in the normal course of business operations.
• It is necessary for maintaining the current level of production, sales, and profitability.
• The amount is not expected to provide any long-term benefit to the company.
Therefore, the amount spent on an unsuccessful patent right is treated as a revenue expenditure and is shown on the income statement.
Explanation:
Revenue expenditure refers to expenses incurred in the normal course of business operations, which are necessary for maintaining current levels of production, sales, and profitability. These expenses are generally treated as deductible expenses and are shown on the income statement.
In this case, the amount spent on an unsuccessful patent right is a revenue expenditure. This is because:
• The expense is incurred in the normal course of business operations.
• It is necessary for maintaining the current level of production, sales, and profitability.
• The amount is not expected to provide any long-term benefit to the company.
Therefore, the amount spent on an unsuccessful patent right is treated as a revenue expenditure and is shown on the income statement.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Amount spent on unsuccessful patent right is a :a)Revenue Expenditure (Even though the amount is large)b)Deferred Revenue Expenditure (If the amount is large)c)Capital Expenditured)None of thesesCorrect answer is option 'A'. Can you explain this answer?
Question Description
Amount spent on unsuccessful patent right is a :a)Revenue Expenditure (Even though the amount is large)b)Deferred Revenue Expenditure (If the amount is large)c)Capital Expenditured)None of thesesCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Amount spent on unsuccessful patent right is a :a)Revenue Expenditure (Even though the amount is large)b)Deferred Revenue Expenditure (If the amount is large)c)Capital Expenditured)None of thesesCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amount spent on unsuccessful patent right is a :a)Revenue Expenditure (Even though the amount is large)b)Deferred Revenue Expenditure (If the amount is large)c)Capital Expenditured)None of thesesCorrect answer is option 'A'. Can you explain this answer?.
Amount spent on unsuccessful patent right is a :a)Revenue Expenditure (Even though the amount is large)b)Deferred Revenue Expenditure (If the amount is large)c)Capital Expenditured)None of thesesCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Amount spent on unsuccessful patent right is a :a)Revenue Expenditure (Even though the amount is large)b)Deferred Revenue Expenditure (If the amount is large)c)Capital Expenditured)None of thesesCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Amount spent on unsuccessful patent right is a :a)Revenue Expenditure (Even though the amount is large)b)Deferred Revenue Expenditure (If the amount is large)c)Capital Expenditured)None of thesesCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Amount spent on unsuccessful patent right is a :a)Revenue Expenditure (Even though the amount is large)b)Deferred Revenue Expenditure (If the amount is large)c)Capital Expenditured)None of thesesCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Amount spent on unsuccessful patent right is a :a)Revenue Expenditure (Even though the amount is large)b)Deferred Revenue Expenditure (If the amount is large)c)Capital Expenditured)None of thesesCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Amount spent on unsuccessful patent right is a :a)Revenue Expenditure (Even though the amount is large)b)Deferred Revenue Expenditure (If the amount is large)c)Capital Expenditured)None of thesesCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Amount spent on unsuccessful patent right is a :a)Revenue Expenditure (Even though the amount is large)b)Deferred Revenue Expenditure (If the amount is large)c)Capital Expenditured)None of thesesCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Amount spent on unsuccessful patent right is a :a)Revenue Expenditure (Even though the amount is large)b)Deferred Revenue Expenditure (If the amount is large)c)Capital Expenditured)None of thesesCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Amount spent on unsuccessful patent right is a :a)Revenue Expenditure (Even though the amount is large)b)Deferred Revenue Expenditure (If the amount is large)c)Capital Expenditured)None of thesesCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup