1- Which on of the following is not appear in the balance sheet:
A). Revenue expenditure✔️
B). Capital expenditure
C). Deferred revenue expenditure
D). Future expenditure
2- An expenditure incurred in increasing the efficiency of a fixed asset is called:
A). Revenue expenditure
B). Capital expenditure✔️
C). Current expenditure
D). None of these
3- Any expenditure incurred in acquiring the right to carry on a business is:
A). Revenue expenditure
B). Current expenditure
C). Capital expenditure✔️
D). Deferred expenditure
4- Some revenue nature expenditures are directly connected with fixed assets and are fully added to the cost of assets are:
A). Current expenditure
B). Revenue expenditure
C). Deferred expenditure
D). Capitalized expenditure✔️
5- The capitalized expenditures are shown is:
A). Trading Account
B). Profit and Loss Account
C). Balance sheet assets side✔️
D). Balance sheet liabilities side
6- Preliminary expenses are:
A). Revenue expenditures
B). Capital expenditure
C). Capitalized expenditure
D). Deferred revenue expenditure✔️
7- Depreciation on fixed assets is an example of:
A). Revenue expenditure✔️
B). Capital expenditure
C). Deferred revenue expenditure
D). None of these
8- Cartage paid on the new machine is:
A). Revenue expenditure
B). Capital expenditure✔️
C). Deferred expenditure
D). Current expenditure
9- All revenue expenditure and receipts are taken to:
A). Trading Account only
B). Profit and Loss
C). Trading and profit and Loss Account✔️
D). Balance sheet
10- Any expenditure incurred in achieving operating economy is known as:
A). Revenue expenditure
B). Current expenditure✔️
C). Capital expenditure
D). Capital receipt
11- The cost of furniture purchased for sale is:
A). Revenue expenditure✔️
B). Capital expenditure
C). Current expenditure
D). Deferred expenditure
12- Cost of goods purchased for resale is an example:
A). Capital revenue
B). Revenue expenditure✔️
C). Deferred revenue expenditure
D). Future expenditure
13- Expenditure incurred in acquiring the patents right for the business is an example of:
A). Revenue expenditure
B). Deferred revenue expenditure
C). Capital expenditure✔️
D). Short term expenditure
14- Freight paid on a new machine will be debited to:
A). Machinery account✔️
B). Freight Account
C). Profit and Loss Account
D). None of these
15- Rs.5000 spent on the replacement of worn out parts of the machinery is charged to:
A). Capital expenditure
B). Revenue expenditure✔️
C). Expenditure
D). Deferred revenue expenditure
16- Discount allowed on issue of shares is an example of:
A). Capital expenditure
B). Revenue expenditure
C). Deferred revenue expenditure✔️
D). Term expenditure
17- Rs.3000 spent on the repairs before using the second hand machinery purchase recently is a:
A). Revenue charge
B). Deferred revenue charge
C). Capital charge✔️
D). None of these
18- Expenses incurred in manufacturing products is a:
A). Revenue charge✔️
B). Deferred revenue charge
C). Capital charge
D). None of these
19- Heavy expenditure on advertisement of a new product is a:
A). Capital expenditure
B). Revenue expenditure
C). Current expenditure
D). Deferred revenue expenditure✔️
20- A sum of Rs.2000 paid as wages to repair office furniture should be debited to:
A). Repairs Account✔️
B). Cash Account
C). Furniture Account
D). None of these
21- Distinction between capital and revenue items is important for the preparation of:
A). Balance sheet only
B). Final Account✔️
C). Cash book
D). None of these
22- Receipts which are non-recurring by nature and whose benefit is enjoyed over a long period are called:
A). Capital receipts✔️
B). Revenue receipts
C). Short term receipts
D). Capital profit
23- Receipt which are recurring by nature and which are available for meeting all day to day expenses of a business concern are known as:
A). Capital receipts
B). Revenue receipts✔️
C). Long term receipts
D). Revenue profit
24- A receipt is capital in nature, when:
A). It relates to profit and Loss Account
B). It relates to fixed assets
C). It credited to capital Account ✔️
D). None of these
25- Receipt on account of fixed asset is a:
A). Revenue receipt
B). Current receipt
C). Capital receipt✔️
D). Deferred receipt
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