Cleaning and greasing office fans. It will not increase the earning capacity as it is incurred for maintaining an existing asset. Therefore, it is ______.

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KollegeApply · Accepted Answer

Cleaning and greasing office fans. It will not increase the earning capacity as it is incurred for maintaining an existing asset. Therefore, it is Revenue Expenditure. Explanation: Cleaning and greasing office fans are routine maintenance costs to maintain an existing fixed asset; they don’t increase earning capacity or create a new asset, so they’re expensed in the Profit & Loss as revenue expenditure.

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