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Legal expenses incurred on a suit for breach of contract to supply goods is a
Capital expenditure
Deferred Revenue expenditure
Revenue expenditure
Both 'b' and 'c'
Legal expenses incurred on a suit for breach of contract to supply goods is a Revenue expenditure. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place.
By: honey kaundal ProfileResourcesReport error
Vinay Kumar
it will benefited in the future then why not Deferred Revenue expenditure
Two reason for this to be revenue It is a expense related to a particular contact only so no long term benefit this may happen normally in business, so reoccurring in nature
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