Smaller-scale software initiative or subscription. Which of the following is NOT true about revenue expenditure? 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… Revenue expenditure definition: the amount of money spent by a business or organization on general operating costs such... | Meaning, pronunciation, translations and examples You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. Question Which of the following is not a revenue expenditure ? 1. Revenue expenditure is incurred for the following purposes: D) purchases of goods. Rent on a property. 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. (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'. They improve the financial position of the business. This preview shows page 15 - 28 out of 34 pages. Capital Expenditure and Revenue Expenditure DRAFT. a) Interest receipts on loans given by the government to other parties 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. Which of the following is a capital expenditure? Which of the following is not a revenue expenditure? Insurance. Amount received from sale of equipment is : A firm has purchased a truck costing 20000$ . Capital expenditure may include the following expenditures:- Expenditure incurred on the acquisition of … b) Subsidies. The correct answer is C. Related: Practice and Prepare For Your Upcoming Exams; Previous Question. Business. B. 5) Electrical Re-wire. 66% average accuracy. Practice following Capital and Revenue Expenditure Multiple choice questions. C. Repair to an elevator of a five year old building. A) payment of salaries. Revenue expenditure is incurred in the current period or in one period of account. B) purchase of inventory. Which of the following is not a revenue expenditure ? 3) Rubbish Clearance. Answer A. Revenue Expenditure is that expenditure which is recurring in nature and arises again and again. Adding Air Conditioning To A Company Car B. 1. The benefit of the revenue expenditure is utilized in that period itself. 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. Business, Education. All of the following are examples of revenue expenditures: Routine repair/update costs on equipment. 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. 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. Examples of Revenue Expenditures Examples of revenue expenditures include the amounts spent on repairs and maintenance, selling, general and administrative expenses. 4) Repair and rebuild Walls. These expenses are paid monthly, fortnightly, weekly, and daily. These short solved questions or quizzes are provided by Gkseries. C) extension of building. The revenue expenditures take place after a fixed asset had been put into service and simply keeps the … But the range is wider than that. Capital expenditures are major investments of capital to expand a company's business. 2) Redecoration. Expert Answer . answer choices . Capital Expenditure and Revenue Expenditure DRAFT. These short objective type questions with answers are very important for Board exams as well as competitive exams. School Universiti Teknologi Mara; Course Title ACCOUNTING ACC406; Uploaded By hyokaz9. Revenue expenditure is expenditure concerned with the costs of doing business on a day to day basis. Which of the following is capital expenditure? 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. a) Defence. C. They reduce the profit of the concern. Below are the example of capital expenditure: Repairs on purchase of second asset to put it in to working condition is a capital expenditure. Client received insurance proceeds for loss of rent and for repairing the property following exposure to a Cannabis Plant. This problem has been solved! State with reasons whether the following should be considered as deferred revenue expenditure or capitalized expenditure. A. The purchase of a pencil sharpener for $10 used in an office. 1st - University. Sales tax D. Small expenditures on long- lived assets, such as ` 20 for a paper weight. Annual fire insurance premiums on plant and equipment. Which of the following should not be treated as a revenue expenditure? Advertising. 1st - University. Nov 29,2020 - Which of the following are an example of Revenue Expenditure(a) Preliminary expenses for floating a company(b) Renewal expenses/fee of patent. D) paymen of subscription. 7 months ago. The following expenditure was also incurred in this regard: Registration 500$ For … Financial Accounting Multiple Choice Questions and Answers for competitive exams. c) Pensions. Salaries and wages. 56% average accuracy. 3 months ago. Purchase of Furniture Repairs to Machinery Extension of Office Installation of Equipment. Solution for Which of the following expenditure is not capital expenditure for equipment? C) purchases of motor vehicle. When companies make a revenue expenditure, the expense provides immediate benefits, rather than long term ones. 27 times. Options. A. Mcq Added by: admin Accounting Mcqs 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. 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 … Which of the following is not a revenue expenditure? Which of the following is a revenue expenditure. Changing The Oil In A Vehicle Installation Of A Hydraulic Lift ORebuilding An Engine Installation Of A Security System. d) Interest payments. D. They do not appear in the balance sheet. 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. aishahkamal91_18762. Revenue expenditures are often discussed in the context of fixed assets . b) Paid for the certificate of entitlement of the new car. Options. An example graph showing Company A’s revenue expenditures for June 2019. 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. Pages 34. Edit. Which of the following is a Revenue Expenditure? A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place. According to Kohler “It is an expenditure charged against operation; a term used to contrast with capital expenditure”. Question 4 : Which one of the following is the largest item of expenditure of the Government of India on revenue account? Next Question. 0. 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. Examples of such expenses are wages, rent, power, bad debts, depreciation, telephone, printing, cost […] Stationery, supplies, merchandise. 1) Payment of interest, 2) Purchase of a building, 3) Purchase of a machine, 4) Loans to State government, 5) NULL Which of these is NOT a list of revenue expenditure? answer choices . Answer: Option B Remember Multiple choice questions are having good weightage in the total marks of … Testing for use c. Uninsured theft d. Sale tax e. None… … 1) Repair Walls. D. Delivery costs on newly purchased equipment. This is contrasted with capital expenditures, which are long term investments intended to help a business grow and thrive. These expenses help a business sustain its operations and may not result in an increase in revenue. These are the running expenses of the business. Preliminary expenses paid in the formation of a company. (c) Depreciation on fixed assets. Insurance Proceeds covered the following. What is an example of capital expenditure? Capital Expenditure may include the following: Purchase costs (less any discount received) Meaning of Revenue Expenditure. 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. Save. Revenue expenses are short-term expenses to meet the ongoing operational costs of running a … A) repair of generating set. Capital expenditure, as opposed to revenue expenditure, is generally of a one-off kind and its benefit is derived over several accounting periods. a. Which one of the following is NOT true about revenue expenditure? Revenue expenditure are debited to profit & loss account. Answer : d. Question 5 : Which one of the following is a capital receipt in government budget? a) Purchase of new car for business manager. nurfitridewi95_51731. Question: Which Of The Following Is A Revenue Expenditure? Question: Which Of The Following Is A Revenue Expenditure? The correct answer is C. Related: Practice and Prepare For Your Upcoming Exams; Show transcribed image text. 6) New Carpets for upstairs. Cost of goods sold. 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. 71 times. Assembly b. B. B) payment for advertisement. C. Repair to an elevator of a pencil sharpener for $ 10 used in an Office its operations may... Generally of a pencil sharpener for $ 10 used in an increase in revenue these expenses help a business its! Often discussed in the balance sheet out of 34 pages d. Question 5 which... Acquisition of … Meaning of revenue expenditures for June 2019 a business grow and thrive when companies make revenue... Capital expenditures, which are long term ones not appear in the context of fixed assets the. 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