Expenses in connection with obtaining a license for running the Cinema Hall is Revenue Expenditure, [May 2018, June 2023, 2 Marks]
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Theoretical FrameworkQuestion 4627 of 110
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Detailed Solution & Explanation
False: The Cinema Hall could not be started without license. Expenditure incurred to obtain
the license is pre-operative expense which is to be capitalized. Such expenses are not
revenue and amortized over a period of time.
About This Chapter: Theoretical Framework
Paper
Paper 1: Accounting
Weightage
5-10%
Key Topics
Policies, Standards (Ind AS), Vocabulary
This chapter covers Policies, Standards (Ind AS), Vocabulary and is part of Paper 1: Accounting in the CA Foundation exam.
View Official ICAI SyllabusExam Strategy Tip
This topic carries 5-10% weightage. Focus on understanding core concepts rather than memorizing.
Key Concepts to Understand
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