See below for the correct answer. Capital Expenditure may include the following: Capital Expenditure may include the following: This problem has been solved! Repairs on purchase of second asset to put it into working condition. Examples of Revenue expenditures. expenses incurred on the repairs of the said asset ; It is recurring in nature. Conversion into Cash: It can be converted into cash at any time as these are usually investments in assets. Which statement is most accurate? Following are the important Items of revenue expenditure: All expenses incurred in the ordinary conduct of business, such as rent, salaries, wages, manufacturing expenses, carriage, commission, legal charges, insurance and advertisement, free samples, salaries, postage expenses etc. (d) Payment made to purchase an existing business. C. Legal expenses incurred to acquire the assets. Which of the following is considered a revenue expenditure? Play this game to review Business. Solution for which of the following is a revenue expenditure : a- purchase of a computer for the office b- legal costs for the purchase of property c- cost… These expenses are paid monthly, fortnightly, weekly, and daily. 100% correct and accurate. Revenue Expenditure Example. Generally, expenditure incurred on normal running of the government departments and maintenance of services is treated as revenue expenditure. Join now. 3. The expenses are not done for the capitalization of an asset i.e. purchase of a new car. The construction of a new wing on an existing building is descried as an. Cost of goods sold. C) Debt Service Fund. (e) Carriage paid on purchase of goods. Giving reasons categorise the following into revenue expenditure and capital expenditure. Examples of revenue expenditure are salaries of government employees, interest payment on loans taken by the government, pensions, subsidies, grants, rural development, education and health services, etc. See the answer. Business. salvage value is to the same as . Which of the following is the single largest source of federal revenue? 12. Which of the following is capital expenditure? Revenue Expenditure is that expenditure which is recurring in nature and arises again and again. d) Bought air freshener for the new car. Adding air conditioning to a company car B. a) Interest receipts on loans given by the government to other parties. Question: Which Of The Following Is A Revenue Expenditure? The following features though not exhaustive helps to determine whether a particular expense could be categorized as revenue. a) Defence. repair of machinery, building, furniture etc. b) Subsidies. Capital expenditure is recorded as a Non-Current Asset; revenue expenditure is recorded as an expense or current asset 6 Identify if the following is capital or revenue expenditure and state why. 1. Revenue expenditure definition: the amount of money spent by a business or organization on general operating costs such... | Meaning, pronunciation, translations and examples All of the following are examples of revenue expenditures: Routine repair/update costs on equipment. Capital expenditure, as opposed to revenue expenditure, is generally of a one-off kind and its benefit is derived over several accounting periods. 1. Rent on a property. Wages paid to factory workers. Edit. Answers. ADVERTISEMENTS: (b) Expenses incidental to the carrying of a business, the benefit of which is consumed within the accounting period. Remember Multiple choice questions are having good weightage in the total marks of … Following are some of the most common examples of indirect expenses – Salaries; Rent and taxes; Interest; Repairs; Commission; Depreciation; Miscellaneous expenses; Additionally, these expenses can also arise while managing the repetitive administrative operations of a business. This expenditure might be written off in the same financial year or over a period of a few years. A. Which of the following is considered a capital expenditure? Answer : d . Expenditures will be treated as revenue expenditures if it is incurred for the following purposes: Expenditure for purchasing floating assets i.e., assets meant for resale at a profit or for being converted into saleable goods, such as the cost of goods, raw materials and stores. 60. 2. b) Paid for the certificate of entitlement of the new car. C) When they are available for recognition. Deferred Revenue Expenditure: 1. Which of the following ordinarily would be treated as a revenue expenditure rather than a capital expenditure? Revenue expenditure is incurred for the following purposes: (a) All establishment and other expenses incurred in the normal course of business. a. E) Permanent Fund. Rather it takes place to maintain the asset on an everyday basis e.g. individual income tax. Let's assume that a company made a capital expenditure of $100,000 to install a high efficiency machine. Recevez des mises à jour de vos candidatures et restez connecté. Changing The Oil In A Vehicle Installation Of A Hydraulic Lift ORebuilding An Engine Installation Of A Security System. Repair and maintenance on buildings b. Answer A. Annual fire insurance premiums on Plant and Equipment C. Sales tax paid in connection with the purchase of office equipment D. Small expenditures on long- lived assets, such as ` 20 for a paper weight. nurfitridewi95_51731. Previous question Next question Transcribed Image Text from this Question. which of the following is revenue expenditure : a.wages paid b.waged paid for installation of machinery c.expenditure on purchase of machinery d.purchase - 22860217 Expert Answer . Capital Expenditure and Revenue Expenditure DRAFT. 27 times. Preview this quiz on Quizizz. Benefit period: Its benefits accrue for a long time to the business, say for 10 to 15 years. (i) and (ii) are revenue expenditure because they create neither assets nor reduce liability but (iii) and (iv) are capital expenditure since (iii) reduces liability and (iv) creates an asset. A. 56% average accuracy. replacement of a trucks battery. Revenue Expenditure During the normal course of business, any expenditure incurred of which benefit is received during the same accounting period is called revenue expenditure. Interest on loans and debentures B. Cost of extending office building/ Upgrading factory machine. Revenue expenditure also includes the expenditure incurred for the purchase of raw material and stores required for manufacturing saleable goods and the expenditure incurred to maintain the- fixed assets in proper working conditions i.e. Which of the following is revenue expenditure?a) Demolition & dismantling expenses - 6263322 1. Question 4 : Which one of the following is the largest item of expenditure of the Government of India on revenue account? D. None of these. Log in. B) When there is an enforceable legal claim. Practice following Capital and Revenue Expenditure Multiple choice questions. Save. B) Internal Service Fund. E) Permanent Fund. Which of the following is not a revenue expenditure? Revenue expenditure are debited to profit & loss account. 7 months ago. For instance, Administration expenses of the business, expenses incurred in manufacturing and selling products. Salaries and wages. cost to acquire a printing press. When companies make a revenue expenditure, the expense provides immediate benefits, rather than long term ones. A) Enterprise Fund. Join now. This is contrasted with capital expenditures, which are long term investments intended to help a business grow and thrive. 13. Which of the following expenditures are capital or revenue, give your reasons? (Based on the Question the answer is) Cost of extending office building/ Upgrading factory machine D) Capital Projects Fund. Capital Expenditure and Revenue Expenditure DRAFT. Sociology, 09.09.2020 20:07. ff is what full form or free fire .lol just for fun u all are doing hard work so jut a relief guys . Revenue from property taxes should be recorded in the General Fund A) When received. Revenue expenditure is the expenditure incurred by the company during its ordinary course of business operations. (a) Cost of overhauling and painting a recently bought old van. The new machine requires routine maintenance of $3,000 each month. Advertising. Example of Revenue Expenditure. Insurance. Question 5 : Which one of the following is a capital receipt in government budget? Adding a loading and unloading dock to the company's warehouse C. Purchasing a microcomputer for the marketing department D. Replacing the battery in a company truck E. None of the abov. Which of the following funds is most likely created with an endowed gift? Revenue expenditure are those which are incurred during the normal course of business. Edit. 1) Payment of interest, 2) Purchase of a building, 3) Purchase of a machine, 4) Loans to State government, 5) NULL yes free samples are the best answer. B. Ask your question. Examples of such expenses are wages, rent, power, bad debts, depreciation, telephone, printing, cost […] Its benefits accrue to the business for a future period, say for 3 to 5 years. Show transcribed image text. Which of the following is capital expenditure? Which of the following is a revenue expenditure? The debt ceiling permits borrowing for expenditures that have already been authorized by Congress and the president. a) Purchase of new car for business manager. You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. The tax code is indexed to compensate for. (b) Cost of pulling down an old building in order to replace it by a new one. (i) Subsidies, (ii) Grants, (iii) Repayment of loan, and (iv) Construction of school building. Expert Answer 100% (1 rating) Previous question Next question Get more help from Chegg. Cost of issuing shares and debentures. Answers. Which of the following should not be treated as revenue expenditure? Smaller-scale software initiative or subscription. But the range is wider than that. d) Interest payments. Is The Right Answer to the question Full Question with Answer : Which of the following is not a revenue expenditure? The replacement of a major component of a building c. An addition to an existing building d. Rearrangement costs that are identifiable, material, and are expected to provide discernable future benefits 61. 1st - University . We can never convert these into cash. 7 months ago. c) Bought car cushion for the new car. Which of the following is revenue expenditure? Social security. 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