Theoretical FrameworkQuestion 4628 of 110
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Overhauling expenses for the engine of motor car to get better fuel efficiency is revenue expenditure. [Nov. 2018, 2 Marks]

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Detailed Solution & Explanation

False: Overhauling expenses incurred for the engine of a motor car to derive better fuel efficiency will reduce the running cost, so this is a capital expenditure.

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 Syllabus

Exam Strategy Tip

This topic carries 5-10% weightage. Focus on understanding core concepts rather than memorizing.

Key Concepts to Understand

Revenue Expenditure

Expenditure incurred in the normal course of business operations whose benefit is consumed within the same accounting period. It is charged to the Profit & Loss Account.

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Differentiate between Book keeping and Accounting. [Sept. 2024, 4 Marks]

Capital is all assets less fictitious assets.

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