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which of the following is a revenue expenditure

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