56% average accuracy. B. 27 times. This problem has been solved! a. (d) Repair of machinery normal or due to negligence of operator(e) Expenses for obtaining a license.Options are as followsa)a,b,c,d,b)b,c,dc)c,d,ed)a,b,c,d,e,Correct answer is option 'B'. Capital Expenditure may include the following: Purchase costs (less any discount received) Testing for use c. Uninsured theft d. Sale tax e. None… nurfitridewi95_51731. Financial Accounting Multiple Choice Questions and Answers for competitive exams. Meaning of Revenue Expenditure. Options. Question 4 : Which one of the following is the largest item of expenditure of the Government of India on revenue account? Revenue expenditure is expenditure concerned with the costs of doing business on a day to day basis. … C) purchases of motor vehicle. Revenue expenditure is incurred in the current period or in one period of account. Which of the following is not a revenue expenditure ? B) purchase of inventory. Cost of goods sold. These expenses are paid monthly, fortnightly, weekly, and daily. When companies make a revenue expenditure, the expense provides immediate benefits, rather than long term ones. What is an example of capital expenditure? Question Which of the following is not a revenue expenditure ? They improve the financial position of the business. a) Interest receipts on loans given by the government to other parties Which of the following is a revenue expenditure. Which of the following should not be treated as a revenue expenditure? c) Pensions. School Universiti Teknologi Mara; Course Title ACCOUNTING ACC406; Uploaded By hyokaz9. The revenue expenditures take place after a fixed asset had been put into service and simply keeps the … Amount received from sale of equipment is : A firm has purchased a truck costing 20000$ . Revenue expenditure is incurred for the following purposes: Capital Expenditure and Revenue Expenditure DRAFT. Expert Answer . These short objective type questions with answers are very important for Board exams as well as competitive exams. Revenue expenditure refers to those expenditures which are incurred during normal business operation by the company, benefit of which will be received in the same period and the example of which includes rent expenses, utility expenses, salary expenses, insurance expenses, commission expenses, manufacturing expenses, legal expenses, postage and printing … a) Purchase of new car for business manager. Capital Expenditure and Revenue Expenditure DRAFT. All of the following are examples of revenue expenditures: Routine repair/update costs on equipment. answer choices . Which of the following is not a revenue expenditure? Assembly b. Solution for Which of the following expenditure is not capital expenditure for equipment? Salaries and wages. Changing The Oil In A Vehicle Installation Of A Hydraulic Lift ORebuilding An Engine Installation Of A Security System. Answer: Option B Capital expenditure may include the following expenditures:- Expenditure incurred on the acquisition of … It is the branch of economics which assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones. Which of the following is capital expenditure? 66% average accuracy. 2) Redecoration. Capital expenditure, as opposed to revenue expenditure, is generally of a one-off kind and its benefit is derived over several accounting periods. The benefit of the revenue expenditure is utilized in that period itself. Smaller-scale software initiative or subscription. An example graph showing Company A’s revenue expenditures for June 2019. Which of the following is a Revenue Expenditure? b) Subsidies. The initial expenditure on the machinery would be a capital expenditure and would be reported on the balance sheet at the amount paid to acquire it. Which of the following is not a revenue expenditure? 5) Electrical Re-wire. Insurance. C. They reduce the profit of the concern. D. Small expenditures on long- lived assets, such as ` 20 for a paper weight. According to Kohler “It is an expenditure charged against operation; a term used to contrast with capital expenditure”. Stationery, supplies, merchandise. Revenue expenditures are often discussed in the context of fixed assets . 3) Rubbish Clearance. D) paymen of subscription. C) extension of building. Preliminary expenses paid in the formation of a company. Question: Which Of The Following Is A Revenue Expenditure? Examples of such expenses are wages, rent, power, bad debts, depreciation, telephone, printing, cost […] Solution for which of the following is a revenue expenditure : a- purchase of a computer for the office b- legal costs for the purchase of property c- cost… 0. These short solved questions or quizzes are provided by Gkseries. A) repair of generating set. This is contrasted with capital expenditures, which are long term investments intended to help a business grow and thrive. Below are the example of capital expenditure: Repairs on purchase of second asset to put it in to working condition is a capital expenditure. But the range is wider than that. Expenditures will be treated as revenue expenditures if it is incurred for the following purposes: Expenditure for purchasing floating assets i.e., assets meant for resale at a profit or for being converted into saleable goods, such as the cost of goods, raw materials and stores. Legal expenses incurred in defending a suit for breach of contract for supply of goods does not satisfy the prerequisites of a deferred revenue expenditure. 4) Repair and rebuild Walls. State with reasons whether the following should be considered as deferred revenue expenditure or capitalized expenditure. Which one of the following is NOT true about revenue expenditure? Annual fire insurance premiums on plant and equipment. Remember Multiple choice questions are having good weightage in the total marks of … Next Question. The correct answer is C. Related: Practice and Prepare For Your Upcoming Exams; A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place. Which of the following is a capital expenditure? Nov 29,2020 - Which of the following are an example of Revenue Expenditure(a) Preliminary expenses for floating a company(b) Renewal expenses/fee of patent. The business expenditures are of two types:- Capital expenditures Revenue expenditures Capital expenditures Definition and explanation of capital expenditures: An expenditure is a capital expenditure if the benefit of the expenditure extends to several trading years. 1. B. Business. Adding Air Conditioning To A Company Car B. These expenses help a business sustain its operations and may not result in an increase in revenue. Sales tax The correct answer is C. Related: Practice and Prepare For Your Upcoming Exams; Previous Question. 1. A. C. A revenue expenditure is an expenditure whose benefit expires within the current accounting period and is in the nature of recurring and is therefore written off to P&L A/c. 1) Payment of interest, 2) Purchase of a building, 3) Purchase of a machine, 4) Loans to State government, 5) NULL Answer : d. Question 5 : Which one of the following is a capital receipt in government budget? Edit. This preview shows page 15 - 28 out of 34 pages. (c) Depreciation on fixed assets. 1) Repair Walls. a) Defence. Purchase of Furniture Repairs to Machinery Extension of Office Installation of Equipment. Practice following Capital and Revenue Expenditure Multiple choice questions. Examples of Revenue Expenditures Examples of revenue expenditures include the amounts spent on repairs and maintenance, selling, general and administrative expenses. D) purchases of goods. 6) New Carpets for upstairs. Adding A Loading And Unloading Dock To The Company's Warehouse C. Purchasing A Microcomputer For The Marketing Department D. Replacing The Battery In A Company Truck E. These are the running expenses of the business. 1st - University. You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. Business, Education. B) payment for advertisement. The purchase of a pencil sharpener for $10 used in an office. 71 times. Revenue expenditure definition: the amount of money spent by a business or organization on general operating costs such... | Meaning, pronunciation, translations and examples aishahkamal91_18762. C. Repair to an elevator of a five year old building. D. They do not appear in the balance sheet. Insurance Proceeds covered the following. Capital expenditures are major investments of capital to expand a company's business. Capital expenditure is recorded as a Non-Current Asset; revenue expenditure is recorded as an expense or current asset 6 Identify if the following is capital or revenue expenditure and state why. Revenue Expenditure is that expenditure which is recurring in nature and arises again and again. D. Delivery costs on newly purchased equipment. 7 months ago. Question: Which Of The Following Is A Revenue Expenditure? Advertising. A) payment of salaries. answer choices . Mcq Added by: admin Accounting Mcqs The following expenditure was also incurred in this regard: Registration 500$ For … d) Interest payments. C is the correct answer as legal expenses in connection with defending a title will be expensed each year.In A the construction of factory shed will be capitalised and booked as an assetIn B Sales tax will be added to the cost of office equipment and will be capitalized. Options. Client received insurance proceeds for loss of rent and for repairing the property following exposure to a Cannabis Plant. A revenue expenditure is an amount that is spent for an expense that will be matched immediately with the revenues reported on the current period's income statement. See the answer. 3 months ago. b) Paid for the certificate of entitlement of the new car. Revenue Expenditure During the normal course of business, any expenditure incurred of which benefit is received during the same accounting period is called revenue expenditure. Which of the following is NOT true about revenue expenditure? Which of these is NOT a list of revenue expenditure? A. Revenue expenses are short-term expenses to meet the ongoing operational costs of running a … Save. 1st - University. Pages 34. Answer A. One of the examples of revenue expenditure which could serve as a contrast to the capital expenditures is that of depreciation done on an annual basis on a capitalized asset. Revenue expenditure are debited to profit & loss account. Show transcribed image text. Rent on a property. Questions with Answers are very important for Board exams as well as competitive exams of Repairs... The largest item of expenditure of the revenue expenditure are debited to profit & account. Short solved questions or quizzes are provided by Gkseries mcq Added by: admin Mcqs! Of account revenue account used in an Office of India on revenue account for Your Upcoming ;. In that period itself nature and arises again and again are paid,., general and administrative expenses rather than long term investments intended to help a business its... Company a ’ s revenue expenditures examples of revenue expenditures: Routine repair/update costs equipment. And arises again and again following are examples of revenue expenditure, opposed... Its operations and may not result in an Office an example graph showing Company a ’ s revenue expenditures June... 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