Expenses in connection with obtaining a license for running the Cinema Hall is Revenue Expenditure, [May 2018, June 2023, 2 Marks]
Options
A
B
C
D
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Theoretical FrameworkQuestion 4627 of 110
All Questions Correct Answer
✅ Option — Correct Option
All Options:
- A
- B
- C
- D
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.
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