Expenses in connection with obtaining a license for running a cinema are revenue expenditure.

No, the expenses in connection with obtaining a license for running a cinema are not considered as revenue expenditure. These are typically classified as capital expenditure.

Here's why:

1. Definition: Revenue expenditure is an amount that is expensed immediately in the profit and loss account. It is the expenditure incurred on day to day functioning of the business and has immediate benefit, not extending beyond the financial year.

2. On the other hand, capital expenditure is the expenditure whose benefits are not consumed within the current accounting period but over several accounting periods. These are long-term investments which include the purchase of assets, like equipment or property.

3. In the context of the question, obtaining a license for running a cinema is a one-time cost that provides benefits over several years. The license is necessary to legally operate the cinema and is not a recurring, day-to-day operating expense.

4. Therefore, the cost of obtaining the license is a capital expenditure, not a revenue expenditure. It is an investment into the business that will provide benefits over the long term.

5. This expenditure would be recorded as an intangible asset on the balance sheet and would be amortized over the useful life of the license.