which of the following is a revenue expenditure

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

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