which of the following is a revenue expenditure

    which of the following is a revenue expenditure

    A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place. a) Interest receipts on loans given by the government to other parties B) payment for advertisement. 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. 71 times. 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. 1st - University. Salaries and wages. Revenue expenditure is incurred for the following purposes: b) Paid for the certificate of entitlement of the new car. a) Defence. b) Subsidies. An example graph showing Company A’s revenue expenditures for June 2019. 1) Payment of interest, 2) Purchase of a building, 3) Purchase of a machine, 4) Loans to State government, 5) NULL 3) Rubbish Clearance. The following expenditure was also incurred in this regard: Registration 500$ For … 7 months ago. Changing The Oil In A Vehicle Installation Of A Hydraulic Lift ORebuilding An Engine Installation Of A Security System. 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? A) repair of generating set. 27 times. 5) Electrical Re-wire. Testing for use c. Uninsured theft d. Sale tax e. None… A) payment of salaries. Capital Expenditure and Revenue Expenditure DRAFT. This is contrasted with capital expenditures, which are long term investments intended to help a business grow and thrive. 66% average accuracy. 2) Redecoration. Smaller-scale software initiative or subscription. Advertising. All of the following are examples of revenue expenditures: Routine repair/update costs on equipment. nurfitridewi95_51731. Financial Accounting Multiple Choice Questions and Answers for competitive exams. answer choices . Mcq Added by: admin Accounting Mcqs Question Which of the following is not a revenue expenditure ? Revenue expenditures are often discussed in the context of fixed assets . The correct answer is C. Related: Practice and Prepare For Your Upcoming Exams; Previous Question. Examples of such expenses are wages, rent, power, bad debts, depreciation, telephone, printing, cost […] Revenue expenditure definition: the amount of money spent by a business or organization on general operating costs such... | Meaning, pronunciation, translations and examples 1. Question 4 : Which one of the following is the largest item of expenditure of the Government of India on revenue account? Below are the example of capital expenditure: Repairs on purchase of second asset to put it in to working condition is a capital expenditure. a. D) paymen of subscription. 1) Repair Walls. D) purchases of goods. … Insurance Proceeds covered the following. Answer : d. Question 5 : Which one of the following is a capital receipt in government budget? 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. Sales tax Which of the following is NOT true about revenue expenditure? Capital Expenditure may include the following: Purchase costs (less any discount received) These are the running expenses of the business. C) extension of building. Revenue expenditure is expenditure concerned with the costs of doing business on a day to day basis. Capital expenditure, as opposed to revenue expenditure, is generally of a one-off kind and its benefit is derived over several accounting periods. 0. C. They reduce the profit of the concern. Capital expenditures are major investments of capital to expand a company's business. Pages 34. These short objective type questions with answers are very important for Board exams as well as competitive exams. D. Small expenditures on long- lived assets, such as ` 20 for a paper weight. D. Delivery costs on newly purchased equipment. Examples of Revenue Expenditures Examples of revenue expenditures include the amounts spent on repairs and maintenance, selling, general and administrative expenses. Remember Multiple choice questions are having good weightage in the total marks of … Which of the following is a capital expenditure? 56% average accuracy. 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… Which of the following is not a revenue expenditure? 1. The purchase of a pencil sharpener for $10 used in an office. Purchase of Furniture Repairs to Machinery Extension of Office Installation of Equipment. According to Kohler “It is an expenditure charged against operation; a term used to contrast with capital expenditure”. D. They do not appear in the balance sheet. Business. When companies make a revenue expenditure, the expense provides immediate benefits, rather than long term ones. Which of the following should not be treated as a revenue expenditure? These short solved questions or quizzes are provided by Gkseries. C. Repair to an elevator of a five year old building. They improve the financial position of the business. B. Answer: Option B a) Purchase of new car for business manager. (c) Depreciation on fixed assets. Which of the following is a Revenue Expenditure?

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