MCQ Practice

Which one of the following is a capital expenditure?

Subject: AccountingTopic: Accounting
A

Compensation paid to Directors on termination of their services

B

Expenditure incurred in connection with the renewal of a Trade Mark.

C

Gratuities paid to Directors on termination of their services.

D

Royalty paid in installments for the purchase of rights to manufacture and sell patient medicines.

Correct Answer: A