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 is a revenue expenditure. Annual fire insurance premiums on plant and equipment. Capital expenditure may include the following expenditures:- Expenditure incurred on the acquisition of … a) Interest receipts on loans given by the government to other parties Save. Answer: Option B Examples of Revenue Expenditures Examples of revenue expenditures include the amounts spent on repairs and maintenance, selling, general and administrative expenses. 1st - University. See the answer. Rent on a property. a) Defence. Revenue Expenditure is that expenditure which is recurring in nature and arises again and again. 1. B) purchase of inventory. 3) Rubbish Clearance. D) purchases of goods. 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 During the normal course of business, any expenditure incurred of which benefit is received during the same accounting period is called revenue expenditure. 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. Question: Which Of The Following Is A Revenue Expenditure? nurfitridewi95_51731. Which of the following is not a revenue expenditure? Revenue expenditure is incurred for the following purposes: Edit. According to Kohler “It is an expenditure charged against operation; a term used to contrast with capital expenditure”. A) repair of generating set. 1) Repair Walls. Revenue expenses are short-term expenses to meet the ongoing operational costs of running a … Assembly b. 3 months ago. Business. 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 … Examples of such expenses are wages, rent, power, bad debts, depreciation, telephone, printing, cost […] a) Purchase of new car for business manager. 6) New Carpets for upstairs. Below are the example of capital expenditure: Repairs on purchase of second asset to put it in to working condition is a capital expenditure. This problem has been solved! Advertising. Answer A. Capital Expenditure and Revenue Expenditure DRAFT. Question Which of the following is not a revenue expenditure ? Options. Revenue expenditure are debited to profit & loss account. State with reasons whether the following should be considered as deferred revenue expenditure or capitalized expenditure. But the range is wider than that. An example graph showing Company A’s revenue expenditures for June 2019. Amount received from sale of equipment is : A firm has purchased a truck costing 20000$ . Salaries and wages. D) paymen of subscription. … Answer : d. Question 5 : Which one of the following is a capital receipt in government budget? B. Preliminary expenses paid in the formation of a company. These are the running expenses of the business. 71 times. You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. The correct answer is C. Related: Practice and Prepare For Your Upcoming Exams; Capital Expenditure may include the following: Purchase costs (less any discount received) Which of the following is capital expenditure? Revenue expenditure is incurred in the current period or in one period of account. Question: Which Of The Following Is A Revenue Expenditure? 1st - University. Business, Education. Which of the following is not a revenue expenditure ? This is contrasted with capital expenditures, which are long term investments intended to help a business grow and thrive. 1) Payment of interest, 2) Purchase of a building, 3) Purchase of a machine, 4) Loans to State government, 5) NULL The benefit of the revenue expenditure is utilized in that period itself. Meaning of 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… C) extension of building. Capital Expenditure and Revenue Expenditure DRAFT. A. Sales tax answer choices . 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. 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. Revenue expenditure is expenditure concerned with the costs of doing business on a day to day basis. What is an example of capital expenditure? aishahkamal91_18762. Solution for Which of the following expenditure is not capital expenditure for equipment? B) payment for advertisement. The following expenditure was also incurred in this regard: Registration 500$ For … D. Small expenditures on long- lived assets, such as ` 20 for a paper weight. 56% average accuracy. Which of the following is NOT true about revenue expenditure? Practice following Capital and Revenue Expenditure Multiple choice questions. 5) Electrical Re-wire. C. Repair to an elevator of a five year old building. Revenue expenditures are often discussed in the context of fixed assets . Next Question. Stationery, supplies, merchandise. a. Changing The Oil In A Vehicle Installation Of A Hydraulic Lift ORebuilding An Engine Installation Of A Security System. 4) Repair and rebuild Walls. Remember Multiple choice questions are having good weightage in the total marks of … A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place. Options. These expenses are paid monthly, fortnightly, weekly, and daily. Revenue expenditure definition: the amount of money spent by a business or organization on general operating costs such... | Meaning, pronunciation, translations and examples Which of the following is not a revenue expenditure? Which of the following is a capital expenditure? These short objective type questions with answers are very important for Board exams as well as competitive exams. Cost of goods sold. C) purchases of motor vehicle. Which of the following is a Revenue Expenditure? Which one of the following is NOT true about revenue expenditure? School Universiti Teknologi Mara; Course Title ACCOUNTING ACC406; Uploaded By hyokaz9. The purchase of a pencil sharpener for $10 used in an office. 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. Which of the following should not be treated as a revenue expenditure? Pages 34. 2) Redecoration. A) payment of salaries. 27 times. D. Delivery costs on newly purchased equipment. They improve the financial position of the business. 66% average accuracy. 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. Expert Answer . Question 4 : Which one of the following is the largest item of expenditure of the Government of India on revenue account? Purchase of Furniture Repairs to Machinery Extension of Office Installation of Equipment. Client received insurance proceeds for loss of rent and for repairing the property following exposure to a Cannabis Plant. Mcq Added by: admin Accounting Mcqs 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. All of the following are examples of revenue expenditures: Routine repair/update costs on equipment. Financial Accounting Multiple Choice Questions and Answers for competitive exams. 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. A. 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