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Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery?
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Which one is a capital transaction? * Purchase of goods Payment of wag...
Capital Transaction in Commerce
Capital transactions are those transactions that involve the purchase or sale of long-term assets that are used in the production of goods or services. These transactions have a long-term impact on the financial position of a company. Given below are the examples of various transactions, let's see which one is a capital transaction.
Purchase of Goods
The purchase of goods is a revenue transaction. It is an exchange of goods for money, and it does not have any long-term impact on the financial position of a company. The goods are purchased for resale or to use in the production process. Hence, it is not a capital transaction.
Payment of Wages
The payment of wages is a revenue transaction. It is a payment made to the employees for their services rendered. This transaction does not have any long-term impact on the financial position of a company. Hence, it is not a capital transaction.
Sales of Goods
The sales of goods are a revenue transaction. It is an exchange of goods for money, and it does not have any long-term impact on the financial position of a company. The goods are sold to customers for consumption or use. Hence, it is not a capital transaction.
Purchase of Machinery
The purchase of machinery is a capital transaction. It involves the acquisition of long-term assets that are used in the production process. The machinery is expected to generate revenue for several years, and it has a long-term impact on the financial position of a company. Hence, it is a capital transaction.
Conclusion
In conclusion, the purchase of machinery is a capital transaction, whereas the purchase of goods, payment of wages, and sales of goods are revenue transactions. Capital transactions are essential for the growth and expansion of a company, and they have a long-term impact on the financial position of a company.
Capital transactions are those transactions that involve the purchase or sale of long-term assets that are used in the production of goods or services. These transactions have a long-term impact on the financial position of a company. Given below are the examples of various transactions, let's see which one is a capital transaction.
Purchase of Goods
The purchase of goods is a revenue transaction. It is an exchange of goods for money, and it does not have any long-term impact on the financial position of a company. The goods are purchased for resale or to use in the production process. Hence, it is not a capital transaction.
Payment of Wages
The payment of wages is a revenue transaction. It is a payment made to the employees for their services rendered. This transaction does not have any long-term impact on the financial position of a company. Hence, it is not a capital transaction.
Sales of Goods
The sales of goods are a revenue transaction. It is an exchange of goods for money, and it does not have any long-term impact on the financial position of a company. The goods are sold to customers for consumption or use. Hence, it is not a capital transaction.
Purchase of Machinery
The purchase of machinery is a capital transaction. It involves the acquisition of long-term assets that are used in the production process. The machinery is expected to generate revenue for several years, and it has a long-term impact on the financial position of a company. Hence, it is a capital transaction.
Conclusion
In conclusion, the purchase of machinery is a capital transaction, whereas the purchase of goods, payment of wages, and sales of goods are revenue transactions. Capital transactions are essential for the growth and expansion of a company, and they have a long-term impact on the financial position of a company.
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Which one is a capital transaction? * Purchase of goods Payment of wag...
Purchase of machinery
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Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery?
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Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery?.
Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery?.
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