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Test: Capital And Revenue Expenditures And Receipts - 1


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30 Questions MCQ Test Crash Course of Accountancy - Class 11 | Test: Capital And Revenue Expenditures And Receipts - 1

Test: Capital And Revenue Expenditures And Receipts - 1 for CA Foundation 2022 is part of Crash Course of Accountancy - Class 11 preparation. The Test: Capital And Revenue Expenditures And Receipts - 1 questions and answers have been prepared according to the CA Foundation exam syllabus.The Test: Capital And Revenue Expenditures And Receipts - 1 MCQs are made for CA Foundation 2022 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Capital And Revenue Expenditures And Receipts - 1 below.
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Test: Capital And Revenue Expenditures And Receipts - 1 - Question 1

 Rs. 2500, spent on the overhauling on purchase of second hand machinery: 

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 2

Brokerage on the issue of shares and debentures is a _______expenditure : 

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 3

 A second hand car is purchased for Rs. 10,000 the amount of Rs. 1,000 is spent on its repairs, Rs. 500 is incurred to get the car registered in owner’s name and Rs. 1,200 is paid as dealer’s commission. The amount debited to car account will be 

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 4

Machinery was purchased for Rs. 10,000 and Rs. 500 paid as wages for erection of machinery? The account that should be debited is : 

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 5

If repair cost is Rs. 25,000, whitewash expenses are Rs. 5,000, cost of extension of building is Rs. 2,50,000 and cost of improvement in electrical wiring system is Rs. 19,000; the amount to be expensed is 

Detailed Solution for Test: Capital And Revenue Expenditures And Receipts - 1 - Question 5

Repair cost = 25000
Whitewash expenses = 5000
cost of extension building = 250000
Cost of improvement in electric wiring system = 19000

Total expenses = a. 2,99,000

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 6

 X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rd of his time for the building construction. The capitalized cost of office building was:

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 7

Capital expenditure provide ………………….benefit: 

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 8

Amount received from IDBI as a medium term loan for augmenting working capital is

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 9

Rs. 2,500 spent on the overhaul of machines purchased second-hand is

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 10

 Recovery of Bad debt is a : 

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 11

Loss caused by theft of cash by cashier after business hours is a : 

Detailed Solution for Test: Capital And Revenue Expenditures And Receipts - 1 - Question 11

Loss of cash due to theft committed either by the employees or by the outsiders, after business hours, is a capital loss because the loss is outside the trade and not incidental to the business. If the loss had been caused during the business hours it would have been a revenue loss because it is incidental to the business.

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 12

Assertion: Damages paid on account of breach of contract to supply certain goods is a capital expenditure.

Reasoning:Such damages are incurred in the ordinary course of business : 

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 13

 Insurance claim received on account of machinery damaged completely by fire is

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 14

Capital Receipts are represented in : 

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 15

 Entrance fee of Rs.2,000 received by Ram and Shyam Social club is

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 16

Paper purchased for use as stationery. 

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 17

 Medium term loan obtained from bank for augmenting working capital is:

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 18

Amount spent on unsuccessful patent right is a : 

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 19

Preliminary Expenses are an example of : 

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 20

 ‘A’ purchased a Car on 1.06.2010 for Rs. 5,60,000 and incurred Rs. 25,000 for repairs, etc. He paid Rs. 10,000 as insurance, Rs. 1,500 for petrol. What amount should be debited to Car A/c?

Detailed Solution for Test: Capital And Revenue Expenditures And Receipts - 1 - Question 20

Correct Answer :- b

Explanation : Cost of car Rs. 5,60,000

Repairs Rs. 25,000

Insurance Rs. 10,000 

Petrol Rs.1,500 

Amount debited to Car A/c Rs. 5,96,500

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 21

Share Premium is a :

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 22

Amount of Rs.5,000 spent as lawyers fee to defend a suit claiming that the firm factory site belonged to the plaintiff land is 

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 23

Which of the following is a revenue expenditure ?

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 24

 Revenue Expenditure wrongly recorded as Capital Expenditure will result in:

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 25

Renewal fee for patent is a:

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 26

 An amount of Rs. 30,000 spent on traveling expenses of the company’s director’s to a foreign trip for purchase of an asset to be used in the production process. This is a:

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 27

 Which of the following Expenses will not be included in the acquisition of plant?

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 28

 Amount spent on increasing the seating capacity in a cinema hall is: 

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 29

 Heavy advertisement expenditure should be treated as :

Test: Capital And Revenue Expenditures And Receipts - 1 - Question 30

Expenditure incurred of Rs. 20,000 for trial run of a newly installed machinery would be:

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