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