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Test: Capital And Revenue Expenditures And Receipts - 3 - A Level MCQ


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11 Questions MCQ Test - Test: Capital And Revenue Expenditures And Receipts - 3

Test: Capital And Revenue Expenditures And Receipts - 3 for A Level 2024 is part of A Level preparation. The Test: Capital And Revenue Expenditures And Receipts - 3 questions and answers have been prepared according to the A Level exam syllabus.The Test: Capital And Revenue Expenditures And Receipts - 3 MCQs are made for A Level 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Capital And Revenue Expenditures And Receipts - 3 below.
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Test: Capital And Revenue Expenditures And Receipts - 3 - Question 1

Classify the following expenditures and receipts as capital or revenue:

Q.Money spent Rs. 10,000 as traveling expenses of the directors on trips abroad for purchase of capital assets is 

Test: Capital And Revenue Expenditures And Receipts - 3 - Question 2

Classify the following expenditures and receipts as capital or revenue:

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

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

Classify the following expenditures and receipts as capital or revenue:

Q.Entrance fee of Rs. 2,000 received by Ram and Shyam Social Club.

Detailed Solution for Test: Capital And Revenue Expenditures And Receipts - 3 - Question 3

Entrance fee of Rs. 2000 received by social club is an example of capital receipt. This is the income flow from one of the following sources. 

1.  Cash from the sale of fixed assets

2. Cash from the sale of shares in the business

3. Cash from the issuance of a debt instrument which includes loans and bonds. 

This should result either the reduction in government assets (sale of share, disinvestment) or increase in some liability (government borrowings).

Test: Capital And Revenue Expenditures And Receipts - 3 - Question 4

Classify the following expenditures and receipts as capital or revenue:

Q.Subsidy of Rs. 40,000 received from the government by a manufacturing concern.

Test: Capital And Revenue Expenditures And Receipts - 3 - Question 5

Classify the following expenditures and receipts as capital or revenue:

Q.Insurance claim received on account of machinery damaged completely by fire.

Test: Capital And Revenue Expenditures And Receipts - 3 - Question 6

Classify the following expenditures and receipts as capital or revenue:

Q.Interest on investments received from UTI.

Test: Capital And Revenue Expenditures And Receipts - 3 - Question 7

Classify the following expenditures and receipts as capital or revenue:

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

Test: Capital And Revenue Expenditures And Receipts - 3 - Question 8

Classify the following expenditures and receipts as capital or revenue:

Q.A bad debt recovered during the year.

Test: Capital And Revenue Expenditures And Receipts - 3 - Question 9

Classify the following expenditures and receipts as capital or revenue:

Q.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 - 3 - Question 10

 

Q.Revenue from sale of products ordinarily is reported as part of the earning in the period

Test: Capital And Revenue Expenditures And Receipts - 3 - Question 11

Classify the following expenditures and receipts as capital or revenue:

Q.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 

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