which of the following is a revenue expenditure

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