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All questions of Sole Traders for Grade 12 Exam
________ the amount which is incurred in acquiring or improving the value of fixed assets- a)Capital expenditure
- b)Capital receipt
- c)Revenue receipt
- d)Revenue Expenditure
Correct answer is option 'A'. Can you explain this answer?
________ the amount which is incurred in acquiring or improving the value of fixed assets
a)
Capital expenditure
b)
Capital receipt
c)
Revenue receipt
d)
Revenue Expenditure
|
Kiran Mehta answered |
An expenditure which results in the acquisition of permanent asset which is intended to be permanently used in the business for the purpose of earning revenue is capital expenditure.
It is the money spent by a business organization on acquiring or maintaining fixed assets such as land, building and equipment.
To Know the profitability and financial position of a business we prepared at the end__a)Balance sheetb)Profit and loss accountc)Financial statementd)NoneCorrect answer is option 'C'. Can you explain this answer?
|
Poonam Reddy answered |
Financial statements is the final stage in preparing final accounts. It is prepared to know profitability of the business and is prepared at the end so it is called as final accounts.
The expenditure whose amount is heavy and benefit of the likely to be derived over a number of years called- a)Deferred capital expenditure
- b)Deferred revenue expenditure
- c)Both
- d)None
Correct answer is option 'B'. Can you explain this answer?
The expenditure whose amount is heavy and benefit of the likely to be derived over a number of years called
a)
Deferred capital expenditure
b)
Deferred revenue expenditure
c)
Both
d)
None
|
|
Poonam Reddy answered |
In business, Deferred Revenue Expenditure is an expense which is incurred while accounting period. For example, revenue used for advertisement is deferred revenue expenditure because it will keep showing its benefits over the period of two to three years.
Capital receipts are shown in _____- a)Profit and Loss account
- b)Balance Sheet
- c)Trading account
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Capital receipts are shown in _____
a)
Profit and Loss account
b)
Balance Sheet
c)
Trading account
d)
None of these
|
Vikas Kapoor answered |
► Capital receipts can be found in the balance sheet.
► Revenue receipts can be found in the income statement.
► Capital receipts either reduce the assets of the company or create liability for the company.
_____ prepared to ascertain gross profit and net profit / loss during an accounting period.- a)Financial statement
- b)Cash flow statement
- c)Balance sheet
- d)Income statement
Correct answer is option 'D'. Can you explain this answer?
_____ prepared to ascertain gross profit and net profit / loss during an accounting period.
a)
Financial statement
b)
Cash flow statement
c)
Balance sheet
d)
Income statement
|
EduRev Humanities answered |
The Income Statement is one of a company’s core financial statements that shows their profit and loss over a period of time. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non-operating activities.
The income statement is one of three statements used in both corporate finance (including financial modeling) and accounting. The statement displays the company’s revenue, costs, gross profit, selling and administrative expenses, other expenses and income, taxes paid, and net profit, in a coherent and logical manner.
Following are the Financial statement excepta) Cash Flow statement
b)Income statementc) Balance sheetd)Audit reportCorrect answer is option 'D'. Can you explain this answer?
a) Cash Flow statement
b)Income statement
c) Balance sheet
d)Audit report
Correct answer is option 'D'. Can you explain this answer?
|
Infinity Academy answered |
Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. Financial statements include:
- Balance sheet
- Income statement
- Cash flow statement.
Computer of a firm should be classified as- a)Fictitious
- b)Liquid assets
- c)Fixed assets
- d)Current assets
Correct answer is option 'C'. Can you explain this answer?
Computer of a firm should be classified as
a)
Fictitious
b)
Liquid assets
c)
Fixed assets
d)
Current assets
|
|
Vikas Kapoor answered |
Fixed assets can include buildings, computer equipment, software, furniture, land, machinery, and vehicles. For example, if a company sells produce, the delivery trucks it owns and uses are fixed assets.
The item discount received will appear on the- a)Credit side of Balance sheet
- b)Debit side of Balance sheet
- c)Debit side of Profit and loss account
- d)Credit side of Profit and loss account
Correct answer is option 'D'. Can you explain this answer?
The item discount received will appear on the
a)
Credit side of Balance sheet
b)
Debit side of Balance sheet
c)
Debit side of Profit and loss account
d)
Credit side of Profit and loss account
|
Naina Sharma answered |
Discount received will appear in profit & loss account statement credit side, discount received by the buyer when seller allow discount. Generally discount allowed by the supplier when transaction happened on credit basis, such as trade discount, early payment discounts and high volume purchase discounts.
Which is not an example of Capital expenditure
- a) Expenses for obtaining a license.
- b)Initial expenditure for acquiring patent right.
- c) Depreciation on fixed assets.
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Which is not an example of Capital expenditure
a)
Expenses for obtaining a license.
b)
Initial expenditure for acquiring patent right.
c)
Depreciation on fixed assets.
d)
None of these
|
Pallavi Chopra answered |
Capital Expenditure
Capital expenditure refers to the expenditure incurred for the acquisition of fixed assets or for increasing the earning capacity of the business. The benefits of capital expenditure accrue over a long period of time and are not consumed in the immediate future. The following are the examples of capital expenditure:
- Expenses for obtaining a license
- Preliminary expenses for floating a company
- Initial expenditure for acquiring patent right
- Purchase of land, building, machinery, furniture, etc.
Not an Example of Capital Expenditure
Depreciation on fixed assets is not an example of capital expenditure. Depreciation is the allocation of the cost of a fixed asset over its useful life. It is not an expenditure incurred for the acquisition of a new asset or for increasing the earning capacity of the business. Depreciation is a non-cash expense that reduces the value of the asset over time. It is recorded as an expense in the income statement, but it does not involve any cash outflow.
Conclusion
In conclusion, capital expenditure refers to the expenditure incurred for the acquisition of fixed assets or for increasing the earning capacity of the business. Depreciation on fixed assets is not an example of capital expenditure as it is the allocation of the cost of a fixed asset over its useful life and does not involve any cash outflow.
Capital expenditure refers to the expenditure incurred for the acquisition of fixed assets or for increasing the earning capacity of the business. The benefits of capital expenditure accrue over a long period of time and are not consumed in the immediate future. The following are the examples of capital expenditure:
- Expenses for obtaining a license
- Preliminary expenses for floating a company
- Initial expenditure for acquiring patent right
- Purchase of land, building, machinery, furniture, etc.
Not an Example of Capital Expenditure
Depreciation on fixed assets is not an example of capital expenditure. Depreciation is the allocation of the cost of a fixed asset over its useful life. It is not an expenditure incurred for the acquisition of a new asset or for increasing the earning capacity of the business. Depreciation is a non-cash expense that reduces the value of the asset over time. It is recorded as an expense in the income statement, but it does not involve any cash outflow.
Conclusion
In conclusion, capital expenditure refers to the expenditure incurred for the acquisition of fixed assets or for increasing the earning capacity of the business. Depreciation on fixed assets is not an example of capital expenditure as it is the allocation of the cost of a fixed asset over its useful life and does not involve any cash outflow.
Revenue Expenditure means- a)The expenditure which is incurred for the day to day running of the business
- b)The amount which is incurred in acquiring or improving the value of fixed assets
- c)Both
- d)None
Correct answer is option 'A'. Can you explain this answer?
Revenue Expenditure means
a)
The expenditure which is incurred for the day to day running of the business
b)
The amount which is incurred in acquiring or improving the value of fixed assets
c)
Both
d)
None
|
|
Priyanshu Tiwari answered |
A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place. Revenue expenditures are often discussed in the context of fixed assets. The revenue expenditures take place after a fixed asset had been put into service and simply keeps the asset in working order.
Chapter doubts & questions for Sole Traders - Accounting for Grade 12 2025 is part of Grade 12 exam preparation. The chapters have been prepared according to the Grade 12 exam syllabus. The Chapter doubts & questions, notes, tests & MCQs are made for Grade 12 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests here.
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Accounting for Grade 12
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