Test: Capital And Revenue Expenditures And Receipts - 2 - A Level MCQ

 An old machinery is purchased for Rs. 10,000. Installation charges of Rs. 1,000 were incurred. Repairs to the old machinery = Rs. 7,000 Repairs Account will be debited by: 

Deferred Revenue Expenditure to the extent of not written off, is shown in Balance Sheet under the head:-

Revenue from sale of products, ordinarily, is reported as part of the earning in the period in which

What is the difference between deferred revenue expenditure and prepaid expenses?

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

 Advertising campaign to launch a new product. 

 Interest on investments received from UTI is

A bad debt recovered during the year. 

 Subsidy of Rs. 40,000 received from the government  for working capital by a manufacturing concern is

A new machine was purchased in Delhi and brought to Jaipur factory site for installation. The machine was damaged during transit and repair expenses were incurred amounting to Rs. 20,000. Such repair will be treated as:

 If repairs of Rs. 100 are done on a machinery then which account will be debited?

White washing expenses. 

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

What is the difference between deferred revenue expenditure and prepaid expenses?

Shivam purchased an old building for Rs. 50 lakhs. He demolished the building for the purpose of constructing shopping mall on the same site. Demolition cost was. Rs. 1 lakh. Construction cost of the mall was Rs. 35 lakhs. He inaugurated it and the inauguration cost was Rs. 50,000 Capital Expenditure was:

 Revenue from sale of products, ordinarily, is reported as part of the earning in the period in which

Rs. 2,500 spent on the overhaul of machines purchased second-hand is

Subsidy of Rs. 40,000 received from the government  for working capital by a manufacturing concern is

Deferred Revenue Expenditure to the extent of not written off, is shown in Balance Sheet under the head:-

 An amount of Rs. 30,000 spent on traveling expenses of the company’s director’s to a foreign trip for purchase of an asset to be used in the production process. This is a:

Which of the following statement is false?

 Medium term loan obtained from bank for augmenting working capital is:

Amount spent on increasing the seating capacity in cinema hall is:-

Which of the following Expenses will not be included in the acquisition of plant?

 X limited spent Rs. 10,00,000 towards construction of office building. It also spent Rs. 50,000 towards construction of temporary store and used the store for building construction purpose. On completion of building construction the store was dismantled and the materials were sold for Rs. 20,000. Mr. A, a supervisor was paid Rs. 60,000 as his salary during the period of construction and he devoted 2/3rd of his time for the building construction. The capitalized cost of office building was:

 Advertising campaign to launch a new product. 

Capital Receipts are represented in :