CA Foundation Exam > CA Foundation Questions > Classify the following expenditures and recei...
Start Learning for Free
Classify the following expenditures and receipts as capital or revenue:
Q.Interest on investments received from UTI.
- a)Capital receipt
- b)Revenue receipt
- c)Capital expenditures
- d)Revenue expenditures
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Classify the following expenditures and receipts as capital or revenue...
Revenue receipt. No matter what case is interest received on investments is always revenue receipt.
Capital receipts would be large in nature in respect of amount as well as time like -
1. Issue of share capital
2. Issue of debt funds
3. Sale of fixed assets
4. Sale of long term investments
Most Upvoted Answer
Classify the following expenditures and receipts as capital or revenue...
Classification of Expenditures and Receipts as Capital or Revenue:
Interest on investments received from UTI is classified as a revenue receipt.
Explanation:
Revenue Receipts:
Revenue receipts are the receipts which are earned during the normal course of business operations. These receipts are recurring in nature and are used for meeting day-to-day expenses of the business. Interest on investments received from UTI is earned by the business during the normal course of business operations, thus it is classified as a revenue receipt.
Capital Receipts:
Capital receipts are the receipts which are not earned during the normal course of business operations. These receipts are non-recurring in nature and are used for meeting long-term expenses of the business. Examples of capital receipts are the sale of fixed assets, issuing of shares, etc.
Revenue Expenditures:
Revenue expenditures are the expenditures which are incurred during the normal course of business operations. These expenditures are recurring in nature and are used for meeting day-to-day expenses of the business. Examples of revenue expenditures are salaries, rent, electricity, etc.
Capital Expenditures:
Capital expenditures are the expenditures which are not incurred during the normal course of business operations. These expenditures are non-recurring in nature and are used for meeting long-term expenses of the business. Examples of capital expenditures are the purchase of fixed assets, payment of long-term loans, etc.
In conclusion, interest on investments received from UTI is classified as a revenue receipt as it is earned during the normal course of business operations.
Interest on investments received from UTI is classified as a revenue receipt.
Explanation:
Revenue Receipts:
Revenue receipts are the receipts which are earned during the normal course of business operations. These receipts are recurring in nature and are used for meeting day-to-day expenses of the business. Interest on investments received from UTI is earned by the business during the normal course of business operations, thus it is classified as a revenue receipt.
Capital Receipts:
Capital receipts are the receipts which are not earned during the normal course of business operations. These receipts are non-recurring in nature and are used for meeting long-term expenses of the business. Examples of capital receipts are the sale of fixed assets, issuing of shares, etc.
Revenue Expenditures:
Revenue expenditures are the expenditures which are incurred during the normal course of business operations. These expenditures are recurring in nature and are used for meeting day-to-day expenses of the business. Examples of revenue expenditures are salaries, rent, electricity, etc.
Capital Expenditures:
Capital expenditures are the expenditures which are not incurred during the normal course of business operations. These expenditures are non-recurring in nature and are used for meeting long-term expenses of the business. Examples of capital expenditures are the purchase of fixed assets, payment of long-term loans, etc.
In conclusion, interest on investments received from UTI is classified as a revenue receipt as it is earned during the normal course of business operations.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Classify the following expenditures and receipts as capital or revenue:Q.Interest on investments received from UTI.a)Capital receiptb)Revenue receiptc)Capital expendituresd)Revenue expendituresCorrect answer is option 'B'. Can you explain this answer?
Question Description
Classify the following expenditures and receipts as capital or revenue:Q.Interest on investments received from UTI.a)Capital receiptb)Revenue receiptc)Capital expendituresd)Revenue expendituresCorrect answer is option 'B'. 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 Classify the following expenditures and receipts as capital or revenue:Q.Interest on investments received from UTI.a)Capital receiptb)Revenue receiptc)Capital expendituresd)Revenue expendituresCorrect answer is option 'B'. 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 Classify the following expenditures and receipts as capital or revenue:Q.Interest on investments received from UTI.a)Capital receiptb)Revenue receiptc)Capital expendituresd)Revenue expendituresCorrect answer is option 'B'. Can you explain this answer?.
Classify the following expenditures and receipts as capital or revenue:Q.Interest on investments received from UTI.a)Capital receiptb)Revenue receiptc)Capital expendituresd)Revenue expendituresCorrect answer is option 'B'. 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 Classify the following expenditures and receipts as capital or revenue:Q.Interest on investments received from UTI.a)Capital receiptb)Revenue receiptc)Capital expendituresd)Revenue expendituresCorrect answer is option 'B'. 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 Classify the following expenditures and receipts as capital or revenue:Q.Interest on investments received from UTI.a)Capital receiptb)Revenue receiptc)Capital expendituresd)Revenue expendituresCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Classify the following expenditures and receipts as capital or revenue:Q.Interest on investments received from UTI.a)Capital receiptb)Revenue receiptc)Capital expendituresd)Revenue expendituresCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Classify the following expenditures and receipts as capital or revenue:Q.Interest on investments received from UTI.a)Capital receiptb)Revenue receiptc)Capital expendituresd)Revenue expendituresCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Classify the following expenditures and receipts as capital or revenue:Q.Interest on investments received from UTI.a)Capital receiptb)Revenue receiptc)Capital expendituresd)Revenue expendituresCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Classify the following expenditures and receipts as capital or revenue:Q.Interest on investments received from UTI.a)Capital receiptb)Revenue receiptc)Capital expendituresd)Revenue expendituresCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Classify the following expenditures and receipts as capital or revenue:Q.Interest on investments received from UTI.a)Capital receiptb)Revenue receiptc)Capital expendituresd)Revenue expendituresCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Classify the following expenditures and receipts as capital or revenue:Q.Interest on investments received from UTI.a)Capital receiptb)Revenue receiptc)Capital expendituresd)Revenue expendituresCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation 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!
within 7 days!
Takes less than 10 seconds to signup