Commerce Exam > Commerce Questions > Which one is a capital transaction? * Purchas...
Start Learning for Free
Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery?
Most Upvoted Answer
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.
Community Answer
Which one is a capital transaction? * Purchase of goods Payment of wag...
Purchase of machinery
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Top Courses for CommerceView all
Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery?
Question Description
Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery? for Commerce 2024 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 2024 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 2024 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 2024 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?.
Solutions for Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery? defined & explained in the simplest way possible. Besides giving the explanation of
Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery?, a detailed solution for Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery? has been provided alongside types of Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery? theory, EduRev gives you an
ample number of questions to practice Which one is a capital transaction? * Purchase of goods Payment of wages Sales of goods Purchase of machinery? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup