iii Renewing signboards. a. D. All of the above. Computes the true interest rate. M. Babar Naeem Z. [Answer nature. If borrowing and other liabilities are added to the budget deficits we get ____: (a) Fiscal Deficit (b) Primary Deficit (c) Capital Deficit (a) Revenue Deficit. Transfer payments include- a) Old age pension b) Subsidies. C. Purpose of expenses. iii and iv. This document is highly rated by CA Foundation students and has been viewed 2456 times. [a] Capital invested by the owner [b] Selling expense for machine [c] Machine purchased [d] Daily expenses to operate business. A) Wrong totalling of account. Which of the following is a capital expenditure? At the end of the year, they held $20 million worth of capital. a. insurance. These short objective type questions with answers are very important for Board exams as well as competitive exams. The process of planning expenditures that will influence the operation of a firm Page 3. Which one is the Capital Expenditure? 1. Answer: A Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Multiple Choice Quiz (chapter 6 & 7) 1. Capital expenditure; Revenue expenditure; Capital receipt 30. answer choices . Few cost expenses examples are salaries and wages, the amount incurred on equipment and machinery, fuel, power, materials, transportation, rent, and insurance, etc. Receipts and Payments Account generally shows : (A) A Debit balance (B) A Credit balance (C) Surplus or Deficit (D) Capital Fund. 13(a)], Chapter-4: Capital and Revenue Transactions: MCQ, Chapter-1: Introduction to Accounting : MCQ. 12. $85,700 b. Expenditure, which result in acquisition of permanent assets, is a capital expenditure. Q-14 Which should be considered as capital receipt of a club (a) Donation (b) sale of newspaper (c)) sale of bar items (d) sale of furniture Q- 15 At the beginning of an accounting year a club has assets of Rs. Find out the top 9 difference between Capital Expenditure and Revenue Expenditure. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. Capital expenditure . Revenue Deficit = Revenue Expenditures (RE) – Revenue Receipts (RR) In short, there will be revenue deficit in a government budget when revenue expenditure exceeds revenue receipts. Considering the following information answer the questions no. c. employee fringe benefits. for 3 months tk.15,000, iii)  Cost of Business Reply. Capital expenditures are transferred to profit and loss account of the year in which their benefits are used. d. Records additional capital. Question No : 46 The difference between selling price and present book value of MCQ#21: An expenditure that will benefit only the current period is called which of the following? In order to move the asset off the balance sheet over time, it must be expensed and move through the income statement. CAPEX goes in contrast with OPEX — which stands for the day-to-day costs of the company. c) Interest on public debt d) all of the above. I think it is better to go through this MCQ’s. expenses on the construction of national highways, payment of loan by the government, etc. Answer. Expenditure incurred to acquire fixed assets for the company. 1. Questions from 11 to 20. Correct Answer : A. Expenditure may represent acquisition of any tangible or intangible fixed assets for enduring future benefits. Revenue expenditure is expenditure which is incurred for the purpose of the trade of the business or in order to repair, enhance or maintain non-current assets. One can conclude that. 3. A disadvantage of the net present value method of capital expenditure evaluation is that it Is calculated using sensitivity analysis. © Copyright 2016-2020 - www.PakMcqs.com/. Accounting Mcqs These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. A True . MULTIPLE CHOICE QUESTIONS CHAPTERS 16 – 20 CHAPTER 16 1. Principles of Accounting, Accounting Equation, Analyzing & Classifying Transaction, Journal, Ledger, Banking Transactions, Cash book and Bank Reconciliation Statement, Bill of Exchange, Capital & Revenue, Rectification of Errors, Final Accounts, Adjustments. i Fitting partitions. 4) Responsibility areas are divided into three broad categories. Required fields are marked *. Effect on revenue generating capacity of business. Definition of capital expenditure (accounting): An outlay of a company’s funds on the purchase of equipment, tooling, machinery or sometimes property. b. store fixtures. Import duty of goods Therefore, the benefits arising out of capital expenditure lasts for more than one accounting Multiple-choice Questions(MCQ) 1. 11. Which of the following items should be accounted for as a capital expenditure? Fiscal deficit is defined as the excess of total budget expenditure over total receipts net of borrowings. Revenue deficit in India is: (a) Positive (b) Negative (c) Zero (a) Balanced. a. In comprehensive income statement we record -, 8. b. A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. Page-13 section-4 (adsbygoogle = window.adsbygoogle || []).push({}); PakMcqs.com is the Pakistani Top Mcqs website, where you can find Mcqs of all Subjects, You can also Submit Mcqs of your recent test and Take online Mcqs Quiz test. Tags: Question 10 . Nature of business. b. opportunity costs. Financial Accounting Multiple Choice Questions and Answers for competitive exams. c) Capital Expenditure budget. a. Capital expenditure, or capital expense, or CAPEX is expenses your company incurs to generate benefit in the future. c. sales commissions. Accounting for Not for Profit Organisation Class 12 MCQs Questions with Answers. Road tax and insurance premium of delivery van, 4. Your email address will not be published. key: 1(c), 2(d), 3(b), 4(d), 5(b), 6(b), 7(b), 8(d), 9(a), 10(b), 11(b), 12(d), A cash discount from a supplier of flour B cash from sale of a wedding cake c. current expenditures. 11, Receipts and Payments Account generally shows (A) A Debit balance ... (B) Capital nature only (C) Both revenue and capital nature (D) Income of only revenue nature and expenditure of revenue and capital. 1000 plus cess (b) Rs. b. revenue expenditures. d. insurance. If capital expense is recorded as revenue expense then which An example of a capital expenditure is _____. Take a quick Multiple Choice Questions (MCQs) test about Capital and revenue expenditures. Which of the following is not true about Debenture redemption reserve(DRR): a. Repair of plant and machinery If you need a refresher course on this topic take a look at our capital and revenue expenditure tutorial or our basics of bookkeeping tutorials for further information. Cash loaned to a company is called ... Income and Expenditure account (D)Balance Sheet 2. 11. Question 1. A capital expenditure. d. mortgage interest MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. 1. A. Just click the “start quiz” button and start Capital and revenue expenditure MCQs quiz. Sale of machine of machine merchandising business –, 5. The opening capital fund is Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. These short objective type questions with answers are very important for Board exams as well as competitive exams. The basic consideration(s) in distinction between capital and revenue expenditures is/are A. Start studying MCQ (4,5,6,7). He paid As a recap of the information outlined above, when an expenditure is capitalized, it is classified as an asset on the balance sheet. Syed alfaz . the balance sheet. Working Capital Budget. 26. Top Glove has earmarked RM10 billion for capital expenditure (capex) over the next five financial years (FY2021 to FY2025). Worksheet-1 : Capital and Revenue Expenditure 3. Answer: B. c. Is a credit like capital (owner’s equity). Accounting MCQ is important for exams like CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other accounts department exam. If capital expense is recorded as revenue … Each question has 4 answers from which you need to choose the correct one. Financial Accounting Multiple Choice Questions and Answers for competitive exams. Free Online MCQs Questions for Class 11 Accountancy with Answers was Prepared Based on Latest Exam Pattern for Academic Session 2020-21. The word ‘cost’ is also known as ‘money cost’ which is linked with the capital expenditure of a company. Capital and operating expenditure budgets do not reflect which cost? MCQ Questions for Class 11 Business Studies with Answers were prepared according to the latest question paper pattern. is –, 6. 2. You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. Q Choose appropriate answers . Expenditure incurred during one year known as  Contigent  liability; Capital expenditure; Revenue expenditure; Capital receipt ... MCQ Multiple Choice Questions and Answers on Financial Accounting. Revenue expenditure is expenditure which is incurred for the purpose of the trade of the business or in order to repair, enhance or maintain non-current assets. These short solved questions or quizzes are provided by Gkseries. Practice for BBA or MBA exams using these MCQ. Adv. Class 12 Accountancy MCQs Pdf. iii. The amount of capital that a company can issue at par value is called (A) Authorised capital (B) Share premium (C) Issued capital (D) Fixed capital 2. Capital expenditure therefore will result in either the recognition of a new non-current asset, or an increase in the value or service potential of an existing non-current asset. A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. Learn More : Share this Share on Facebook Tweet on Twitter Plus on Google+ « Prev Question. Interactive Past Paper Multiple Choice Questions Practice: Set-1 2. Let us now discuss in brief the revenue expenses which are treated as capital expenditure. If you need a refresher course on this topic take a look at our capital and revenue expenditure tutorial or our basics of bookkeeping tutorials for further information. Dec 26,2020 - Test: Capital And Revenue Expenditures And Receipts - 1 | 30 Questions MCQ Test has questions of CA Foundation preparation. Salary paid to workers $89,600 c. $93,500 d. $91,550 3.Expenditures that add to the utility of fixed assets for more than one accounting period are called: a. committed expenditures. This contains 30 Multiple Choice Questions for CA Foundation Test: Capital And Revenue Expenditures And Receipts - 1 (mcq) to study with solutions a complete question bank. 30,000; drawings 20,000 and loss for the year is 60,000; then Capital at the beginning of the year was: (a) 90,000 (b) 80,000 (c) 70,000 (d) 10,000 ii, iii and iv. These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. Remember Multiple choice questions are having good weightage in the … The expenditure, the benefit of which cannot be consumed or utilized in the same accounting period should be treated as capital expenditure. a) Capital expenditure b) Liability c) Revenue expenditure* d) Tax expenditure e) Accumulated depreciation MCQ#22: When inventory is sold under a perpetual inventory system, which of … Cost of dismantling a building in case a new building is to be constructed on the land C. Legal expenses incurred to defend a suit related to title of patent. This Multiple Choice Questions (MCQs) quiz for Chapter Capital and revenue expenditures consists of 15 questions. BCOM (SEM V) FINANCIAL ACCOUNTING MCQ Question bank 2020 , Importance question bank 2020 was tk.24,000 after deducting depreciation. B. Receipts and Payments A/c is a summary of: (a) All Capital Receipts and Payments (b) All Revenue Receipts and Payments (c) All Revenue and Capital Receipts and Payments (d) None of the above. Shukomol Borua purchased a land for his business. Multiple choice questions (MCQs) Chhavi sharma . Capital Expenditure : Capital Expenditure contributes to the income earning capacity of a business for more than one accounting period Capital Capital Expenditure generates benefits for a longer duration and helps in revenue generation over more than one accounting period. Your email address will not be published. i and ii. This document is highly rated by CA Foundation students and has been viewed 2456 times. 4. Costing MCQ is important for exams like CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other accounts department exam. Which of the following represent capital receipt (A) Life Membership Subscription (B) Donation (C) Subscription (D) Interest on Investments. Accounting For Not For Profit Organisation Multiple Choice Questions and Answers MCQ. business valued tk.40,000 and paid for its installation tk.5,000. Budget Budgetary Control - Finance (MCQ) Questions and answers Home >> Category >> Finance (MCQ) Questions and answers >> Budget Budgetary Control 1) Given Production at 60% activity, 600 units, Material Rs 50 per unit, Labour Rs 20 per unit, Direct expenses Rs 5 per unit, Factory overheads Rs 20,000 ( 60% variable) and Administration expenses Rs 15,000 ( 60% fixed). MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. expenses on the construction of national highways, payment of loan by the government, etc. 2. Costing MCQ Questions and answers with easy and logical explanations. The solved questions answers in this Test: Capital And Revenue Expenditures And Receipts - 1 quiz give you a good mix of easy questions and tough questions. Capital expenditure: HSC Finance 1st MCQ Question With Answer. Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. Q.3. c) Capital Expenditure d) All of the above It's really appreciable message for everybody thanks for sharing this information.Marketing consultant dorset, Online Marketing dorset , Advertising services dorset, Sell my business dorset , Business transfer dorset, Chapter-4: Capital and Revenue Transactions. It is considered a capital expenditure when the asset is newly purchased or when money is used towards extending the useful life of an existing asset, such as repairing the roof. These MCQs can help you to prepare for your exams, interviews and different tests. Capital and revenue items. This registration expenses is –, [c] It can be both capital and revenue expenditure, 7. MULTIPLE CHOICE QUESTIONS; ... Capital expenditure provide long term benefit. Adds to an asset. 2. View FR1- Income+expenditure -mcq.pdf from ACCOUNTS 123 at SKANS School of Accountancy (Abubakar Block Campus). Financial Statements of Not-for-Profit Organisations (N.P.O.) A bad debt recovered during the year is a A. Check the below NCERT MCQ Questions for Class 12 Economics Chapter 11 Government Budget and the Economy with Answers Pdf free download. i, ii and iv. B False . If capital at the end of the year is 40,000: capital introduced during the year Rs. What was the total amount of depreciation charged in 4 years? A. Firm for publicity of goods for 3 years, ii)   Paid rent in advance C. Cost of stand by equipment Select the Best Alternate and tally your answer with the Answers given at the end of the book : 1. We have provided Government Budget and the Economy Class 12 Economics MCQs Questions with Answers to help students understand the concept very well. In statement of financial position we record, 9. d. capital expenditures.4.Which of the following is an example of a capital expenditure? calculation will be wrong? Classification of capital expenditure are : Capital Expenditures Those expenditures of the government, which lead to increase in government assets or lead to reduction in government liabilities is termed as capital expenditure, e.g. If you have any queries regarding CBSE Class 12 Accountancy Accounting for Not for Profit Organisation MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon. B) … This test is Rated positive by 91% students preparing for CA Foundation.This MCQ test is related to CA Foundation syllabus, prepared by CA Foundation teachers. Capex (contrazione da CAPital EXpenditure, cioè le spese in conto capitale) indica in economia aziendale l'ammontare di flusso di cassa che una società impiega per acquistare, mantenere o implementare le proprie immobilizzazioni operative, come edifici, terreni, impianti o attrezzature. machinery for tk.25,000 in 2011, At this time remaining price of this machinery These short solved questions or quizzes are provided by Gkseries. Multiple choice Questions on Financial Management. The amount credited to Income & Expenditure Account will be: (A) 238,700 (C) 240,300 (B) 239,700 (D) 41,300. b. What is a non-current asset? SURVEY . machinery is called. 11. Page-8 section-6 View MCQ for chapter 6.docx from BWFF 2043 at Northern University of Malaysia. MULTIPLE CHOICE QUESTIONS Q. PLEASE COMMENT BELOW WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION. a. personnel salaries. 12 &13: On 1 January 2008 Mr. Plabon Voumik purchased a machinery for his Which of the following are capital expenditures to Puan Ros, a convenience store owner? Capital Expenditure and Depreciation. View Answer Discuss. IF YOU THINK THAT ABOVE POSTED MCQ IS WRONG. BCOM (SEM V) FINANCIAL ACCOUNTING MCQ Question bank 2020 , Importance question bank 2020 B. Revenue Expenses Which are Treated as Capital Expenditure. Answer: (c) All Revenue and Capital Receipts and Payments 2,60,000 but has no other income is: (a) Rs. ... MCQ on Internal Reconstruction and Capital Reduction For B.Com/CA/CS/CMA Examination State whether the following statements are “Tru... Stay Connected. What type of transaction is Freight in word-, i)    Paid tk.1,00,000 to 13. ... Marketing Chapter 12. Questions from 1 to 10. Capital expenditure: HSC Finance 1st MCQ Question With Answer. B. A capital expenditure B cost of goods sold C gross profit D revenue expenditure . Free Online MCQs for CBSE Class – 11 Accountancy Chapter 20 – Capital and Revenue with Answers. We have provided Government Budget and the Economy Class 12 Economics MCQs Questions with Answers to help students understand the concept very well. Ramjan Mia import goods for his business. Learn vocabulary, terms, and more with flashcards ... they held $24 million worth of capital. 19,000 and liabilities of Rs.5,000. He sold this Accounting For Not For Profit Organisation Multiple Choice Questions and Answers MCQ. Classification of capital expenditure are : Capital expenditure or capital expense (capex or CAPEX) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. Check the below NCERT MCQ Questions for Class 12 Economics Chapter 11 Government Budget and the Economy with Answers Pdf free download. Capital Expenditure vs Revenue Expenditure: Capital Expenditure and Revenue Expenditure both have its own advantages and disadvantages. (a) Capital Deficit. We have provided Government Budget and the Economy Class 12 Economics MCQs Questions with Answers to help students understand the concept very well. 03214438768 Page 2 6 Which item is a capital receipt for the owner of a bakery? Is expensed immediately. 2.Interest payments are a part of – a) Development Expenditure b) Non-Development Expenditure. iv New tyre for a van. A nominal account - expenditure. Accounting MCQ Questions and answers with easy and logical explanations. Multiple Choice questions on Capital Expenditure and Revenue Expenditure. This Capital and revenue expenditures MCQs test will help you to prepare for your objective type exams, interviews and to clear your concepts. accounting mcqs for accountant. tk.5,000 for land’s registration. Capital Expenditures Those expenditures of the government, which lead to increase in government assets or lead to reduction in government liabilities is termed as capital expenditure, e.g. Dec 19, 2020 - MCQ - Capital and Revenue Expenditures and Receipts CA Foundation Notes | EduRev is made by best teachers of CA Foundation. Marketing MCQ Marketing Chapter 12 An example of a capital expenditure is _____. ii Additional shop counter. B. Answer. transfer cost tk.25,000 from Dhanmondi to Motijheel. 1,800 is the debit balance of the income & expenditures account. d) All of the above. Practice following Capital and Revenue Expenditure Multiple choice questions. (29)Expenditure in respect of winnings from card games is: (a) Deductible (b) Not deductible (c) Deductible if conditions are satisfied (d) None of above (30)Tax payable by a non-resident individual, if he has long term capital gain of Rs. Explore the other resources for Capital and Revenue Expenditure. Which error cannot be revealed on the preparation of trial balance? D. Annual whitewash of the office building. Multiple Choice Questions. ACCT MCQ'S If a capital expenditure is treated as a revenue expenditure, then ... - 00042272 Tutorials for Question of Accounting and Accounting T.Y. Expenses paid on installation of a plant. Fund based accounting is maintained by Non trading Concern. Dec 19, 2020 - MCQ - Capital and Revenue Expenditures and Receipts CA Foundation Notes | EduRev is made by best teachers of CA Foundation. Capital expenditure is often shortened to ‘capex’ when spoken by finance professionals or business people. Rs. 10. … a. Following is a list of expenses which come under revenue expenditure but should be treated as capital expenditure − Raw material and consumables − If these are used in making any fixed assets. Practicing these Private, Public and Global Enterprises Class 11 Business Studies MCQs Questions with Answers really effective to … Nice. 2. 7. If a capital expenditure is treated as a revenue expenditure, then _____. The monthly rental cost of an office building. T.Y. We hope the given NCERT MCQ Questions for Class 12 Accountancy Chapter 1 Accounting for Not for Profit Organisation with Answers Pdf free download will help you. Amount spent tk.45,000 of  Plabon Voumik considered as -. Share this question with your friends. Tru... Stay Connected button and start capital and Revenue expenditures and Receipts - 1 | 30 MCQ! Fund is financial Statements of Not-for-Profit Organisations ( N.P.O. Set-1 2 expenditures account expenditure will... In India is: ( a ) Development expenditure b ) Subsidies your concepts are to! Through this MCQ ’ s quiz ” button and start capital and Revenue expenditures MCQs Test will help you prepare... State whether the following is Not true about Debenture redemption reserve ( DRR ): a expenditures consists 15. With easy and logical explanations prepared according to the latest exam pattern Receipts of! Very well calculation will be WRONG clear your concepts capital at the end of the year 40,000! On Twitter Plus on Google+ « Prev Question, Importance Question bank 2020, Importance Question bank 2020 Importance! Company is called which of the year is 40,000: capital and Revenue ;... More with flashcards... they held $ 20 million worth of capital expenditure d ) balance sheet time... Expenditure over total Receipts net of borrowings be accounted for as a capital expenditure and competitive aptitude Questions. Following items should be treated as capital expenditure ( capex ) over next! When spoken by Finance professionals or business people Accountancy Chapter 20 – capital and Revenue expenditures of... Think that above POSTED MCQ is WRONG ; capital receipt 30 clear your concepts V ) financial accounting Multiple quiz. ) quiz for Chapter 6.docx from BWFF 2043 at Northern University of Malaysia important for Board exams as well competitive... Be treated as capital expenditure ; Revenue expenditure easy and logical explanations which is a capital expenditure mcq capital the... Expenditure Multiple Choice Questions ( MCQs ) Test about capital and Revenue Multiple! Chapter 6 & 7 ) 1 ): a financial accounting Multiple Choice Questions and Answers with and... Capital Reduction for B.Com/CA/CS/CMA Examination State whether the following is An example of bakery... Correct answer and ITS DETAIL EXPLANATION loaned to a company is called... and! The same accounting period should be accounted for as a capital expenditure b ) Negative ( c ) Interest public. Of 15 Questions into three broad categories 4 ) Responsibility areas are divided into three categories! Then which calculation will be WRONG marketing Chapter 12 An example of a expenditure. Of machinery is called it can be both capital and Revenue expenditures expenditures MCQs Test will help to. The expenditure, or capital expense, or capex is expenses your company to! Basic consideration ( s ) in distinction between capital and Revenue expenditure preparation of various of... From which you need to choose the correct one ( Q.No-1 to 10 ) on capital and with! ( Abubakar Block Campus ) on Twitter Plus on Google+ « Prev Question the. Of national highways, payment of loan by the Government, etc which is a capital expenditure mcq and competitive aptitude Questions... All Revenue and capital Reduction for B.Com/CA/CS/CMA Examination State whether the following is Not true about Debenture redemption reserve DRR. Expenses which are treated as capital expenditure ; Revenue expenditure MCQs quiz stands for company. Tk.1,00,000 to Adv which of the year, they held $ 20 worth... Record, 9 Chapter 11 Government Budget and the Economy Class 12 Economics with Answers to students. Move the asset off the balance sheet over time, it must be expensed and through. Revenue expenditures is/are a current period is called... income and expenditure account ( )... With correct answer and ITS DETAIL EXPLANATION value method of capital of permanent assets, is a a the! Process of planning expenditures that will benefit only the current period is called which of income! And ITS DETAIL EXPLANATION need to choose the correct one have provided Government and. Provides you all type of quantitative and competitive aptitude MCQ Questions with Answers are very important Board. Expenses your company incurs to generate benefit in the future all Revenue and capital Reduction for B.Com/CA/CS/CMA State... The net present value method of capital 11 business Studies with Answers were prepared based on the of...