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Chose the expenditure from the followings which can be termed as capital expenditure
- a)Amount realized from sale of old furniture
- b)Amount received from debtor whose account was previously written off as bad
- c)Amount of interest accrued on a fixed deposit with bank
- d)Amount realized from debtors against their debts
Correct answer is option 'A'. Can you explain this answer?
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Chose the expenditure from the followings which can be termed as capit...
Capital expenditures refer to funds that are used by a company for the purchase, improvement, or maintenance of long-term assets to improve the efficiency or capacity of the company. Long-term assets are usually physical, fixed and non-consumable assets like property, equipment, or infrastructure that have a useful life of more than one accounting period.
Also known as CapEx or capital expenses, capital expenditures include the purchase of items such as new equipment, machinery, land, plant, buildings or warehouses, furniture and fixtures, business vehicles, software and intangible assets such as a patent or license.
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Chose the expenditure from the followings which can be termed as capit...
Explanation:
Capital Expenditure:
- Capital expenditure refers to the expenses incurred for acquiring or improving a long-term asset, such as property, equipment, or machinery.
- These expenses are expected to provide benefits over multiple accounting periods.
Amount realized from sale of old furniture:
- When old furniture is sold, the amount realized from the sale is considered as capital expenditure.
- This is because the old furniture was a long-term asset that was used by the business to generate revenue.
- The amount realized from the sale is considered as a capital inflow and can be used to acquire new assets or improve existing ones.
Amount received from debtor whose account was previously written off as bad:
- This amount is not considered as capital expenditure.
- It is a recovery of a previously incurred bad debt expense and does not involve the acquisition or improvement of long-term assets.
Amount of interest accrued on a fixed deposit with bank:
- The interest accrued on a fixed deposit is not considered as capital expenditure.
- It is an income earned on an investment and does not involve the acquisition or improvement of long-term assets.
Amount realized from debtors against their debts:
- This amount is not considered as capital expenditure.
- It is a collection of accounts receivable and does not involve the acquisition or improvement of long-term assets.
Therefore, the amount realized from the sale of old furniture is the only expenditure among the options provided that can be termed as capital expenditure as it involves the disposal of a long-term asset.
Capital Expenditure:
- Capital expenditure refers to the expenses incurred for acquiring or improving a long-term asset, such as property, equipment, or machinery.
- These expenses are expected to provide benefits over multiple accounting periods.
Amount realized from sale of old furniture:
- When old furniture is sold, the amount realized from the sale is considered as capital expenditure.
- This is because the old furniture was a long-term asset that was used by the business to generate revenue.
- The amount realized from the sale is considered as a capital inflow and can be used to acquire new assets or improve existing ones.
Amount received from debtor whose account was previously written off as bad:
- This amount is not considered as capital expenditure.
- It is a recovery of a previously incurred bad debt expense and does not involve the acquisition or improvement of long-term assets.
Amount of interest accrued on a fixed deposit with bank:
- The interest accrued on a fixed deposit is not considered as capital expenditure.
- It is an income earned on an investment and does not involve the acquisition or improvement of long-term assets.
Amount realized from debtors against their debts:
- This amount is not considered as capital expenditure.
- It is a collection of accounts receivable and does not involve the acquisition or improvement of long-term assets.
Therefore, the amount realized from the sale of old furniture is the only expenditure among the options provided that can be termed as capital expenditure as it involves the disposal of a long-term asset.
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Chose the expenditure from the followings which can be termed as capital expenditurea) Amount realized from sale of old furniture b) Amount received from debtor whose account was previously written off as bad c) Amount of interest accrued on a fixed deposit with bank d) Amount realized from debtors against their debts Correct answer is option 'A'. Can you explain this answer?
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Chose the expenditure from the followings which can be termed as capital expenditurea) Amount realized from sale of old furniture b) Amount received from debtor whose account was previously written off as bad c) Amount of interest accrued on a fixed deposit with bank d) Amount realized from debtors against their debts Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Chose the expenditure from the followings which can be termed as capital expenditurea) Amount realized from sale of old furniture b) Amount received from debtor whose account was previously written off as bad c) Amount of interest accrued on a fixed deposit with bank d) Amount realized from debtors against their debts Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Chose the expenditure from the followings which can be termed as capital expenditurea) Amount realized from sale of old furniture b) Amount received from debtor whose account was previously written off as bad c) Amount of interest accrued on a fixed deposit with bank d) Amount realized from debtors against their debts Correct answer is option 'A'. Can you explain this answer?.
Chose the expenditure from the followings which can be termed as capital expenditurea) Amount realized from sale of old furniture b) Amount received from debtor whose account was previously written off as bad c) Amount of interest accrued on a fixed deposit with bank d) Amount realized from debtors against their debts Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Chose the expenditure from the followings which can be termed as capital expenditurea) Amount realized from sale of old furniture b) Amount received from debtor whose account was previously written off as bad c) Amount of interest accrued on a fixed deposit with bank d) Amount realized from debtors against their debts Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Chose the expenditure from the followings which can be termed as capital expenditurea) Amount realized from sale of old furniture b) Amount received from debtor whose account was previously written off as bad c) Amount of interest accrued on a fixed deposit with bank d) Amount realized from debtors against their debts Correct answer is option 'A'. Can you explain this answer?.
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Chose the expenditure from the followings which can be termed as capital expenditurea) Amount realized from sale of old furniture b) Amount received from debtor whose account was previously written off as bad c) Amount of interest accrued on a fixed deposit with bank d) Amount realized from debtors against their debts Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Chose the expenditure from the followings which can be termed as capital expenditurea) Amount realized from sale of old furniture b) Amount received from debtor whose account was previously written off as bad c) Amount of interest accrued on a fixed deposit with bank d) Amount realized from debtors against their debts Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Chose the expenditure from the followings which can be termed as capital expenditurea) Amount realized from sale of old furniture b) Amount received from debtor whose account was previously written off as bad c) Amount of interest accrued on a fixed deposit with bank d) Amount realized from debtors against their debts Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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