d) All of the above. Capital expenditures are transferred to profit and loss account of the year in which their benefits are used. 1. iii and iv. [Answer a. MULTIPLE CHOICE QUESTIONS Q. BCOM (SEM V) FINANCIAL ACCOUNTING MCQ Question bank 2020 , Importance question bank 2020 Expenditure incurred during one year known as  Contigent  liability; Capital expenditure; Revenue expenditure; Capital receipt ... MCQ Multiple Choice Questions and Answers on Financial Accounting. 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. transfer cost tk.25,000 from Dhanmondi to Motijheel. 12 &13: On 1 January 2008 Mr. Plabon Voumik purchased a machinery for his the balance sheet. b. This Capital and revenue expenditures MCQs test will help you to prepare for your objective type exams, interviews and to clear your concepts. Fiscal deficit is defined as the excess of total budget expenditure over total receipts net of borrowings. 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. Financial Accounting Multiple Choice Questions and Answers for competitive exams. Capital Expenditure and Depreciation. 2. B. was tk.24,000 after deducting depreciation. 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. C. Purpose of expenses. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. If capital expense is recorded as revenue … CAPEX goes in contrast with OPEX — which stands for the day-to-day costs of the company. c. Is a credit like capital (owner’s equity). ii Additional shop counter. Multiple choice questions (MCQs) Chhavi sharma . A capital expenditure. Adds to an asset. 11. Rs. Practice for BBA or MBA exams using these MCQ. This document is highly rated by CA Foundation students and has been viewed 2456 times. Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. Capital expenditure is often shortened to ‘capex’ when spoken by finance professionals or business people. Multiple Choice Questions. An example of a capital expenditure is _____. machinery is called. Classification of capital expenditure are : calculation will be wrong? These short solved questions or quizzes are provided by Gkseries. Revenue Expenses Which are Treated as Capital Expenditure. Expenditure may represent acquisition of any tangible or intangible fixed assets for enduring future benefits. d. capital expenditures.4.Which of the following is an example of a capital expenditure? ... Marketing Chapter 12. Revenue deficit in India is: (a) Positive (b) Negative (c) Zero (a) Balanced. Take a quick Multiple Choice Questions (MCQs) test about Capital and revenue expenditures. ACCT MCQ'S If a capital expenditure is treated as a revenue expenditure, then ... - 00042272 Tutorials for Question of Accounting and Accounting Cash loaned to a company is called ... Income and Expenditure account (D)Balance Sheet 2. Capital and operating expenditure budgets do not reflect which cost? 1. Multiple Choice Quiz (chapter 6 & 7) 1. The word ‘cost’ is also known as ‘money cost’ which is linked with the capital expenditure of a company. These short objective type questions with answers are very important for Board exams as well as competitive exams. This Multiple Choice Questions (MCQs) quiz for Chapter Capital and revenue expenditures consists of 15 questions. If capital at the end of the year is 40,000: capital introduced during the year Rs. Your email address will not be published. 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. The monthly rental cost of an office building. Which one is the Capital Expenditure? Costing MCQ is important for exams like CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other accounts department exam. c. employee fringe benefits. Accounting For Not For Profit Organisation Multiple Choice Questions and Answers MCQ. What type of transaction is Freight in word-, i)    Paid tk.1,00,000 to B False . Answer: A These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. 13(a)], Chapter-4: Capital and Revenue Transactions: MCQ, Chapter-1: Introduction to Accounting : MCQ. In order to move the asset off the balance sheet over time, it must be expensed and move through the income statement. Marketing MCQ Marketing Chapter 12 An example of a capital expenditure is _____. Answer. (a) Capital Deficit. Learn vocabulary, terms, and more with flashcards ... they held $24 million worth of capital. Which error cannot be revealed on the preparation of trial balance? 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. Transfer payments include- a) Old age pension b) Subsidies. If capital expense is recorded as revenue expense then which D. Annual whitewash of the office building. b. opportunity costs. 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), Accounting MCQ Questions and answers with easy and logical explanations. 2. Free Online MCQs Questions for Class 11 Accountancy with Answers was Prepared Based on Latest Exam Pattern for Academic Session 2020-21. Worksheet-1 : Capital and Revenue Expenditure 3. He paid B. 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. 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. Road tax and insurance premium of delivery van, 4. 7. One can conclude that. for 3 months tk.15,000, iii)  Cost of Business Shukomol Borua purchased a land for his business. These short objective type questions with answers are very important for Board exams as well as competitive exams. 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. iii. MCQ Questions for Class 11 Business Studies with Answers were prepared according to the latest question paper pattern. Accounting MCQ is important for exams like CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other accounts department exam. D. All of the above. Q.3. Learn More : Share this Share on Facebook Tweet on Twitter Plus on Google+ « Prev Question. Practicing these Private, Public and Global Enterprises Class 11 Business Studies MCQs Questions with Answers really effective to … i, ii and iv. We have provided Government Budget and the Economy Class 12 Economics MCQs Questions with Answers to help students understand the concept very well. I think it is better to go through this MCQ’s. 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. We have provided Government Budget and the Economy Class 12 Economics MCQs Questions with Answers to help students understand the concept very well. [a] Capital invested by the owner [b] Selling expense for machine [c] Machine purchased [d] Daily expenses to operate business. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. Adv. T.Y. 1. c) Capital Expenditure budget. 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. 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 Dec 26,2020 - Test: Capital And Revenue Expenditures And Receipts - 1 | 30 Questions MCQ Test has questions of CA Foundation preparation. Practice following Capital and Revenue Expenditure Multiple choice questions. 3. accounting mcqs for accountant. machinery for tk.25,000 in 2011, At this time remaining price of this machinery Dec 19, 2020 - MCQ - Capital and Revenue Expenditures and Receipts CA Foundation Notes | EduRev is made by best teachers of CA Foundation. Ramjan Mia import goods for his business. You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. A capital expenditure B cost of goods sold C gross profit D revenue expenditure . What was the total amount of depreciation charged in 4 years? 2. Definition of capital expenditure (accounting): An outlay of a company’s funds on the purchase of equipment, tooling, machinery or sometimes property. C. Cost of stand by equipment 11. Which of the following is not true about Debenture redemption reserve(DRR): a. SURVEY . Fund based accounting is maintained by Non trading Concern. Page 3. Classification of capital expenditure are : c) Capital Expenditure d) All of the above expenses on the construction of national highways, payment of loan by the government, etc. 03214438768 Page 2 6 Which item is a capital receipt for the owner of a bakery? View MCQ for chapter 6.docx from BWFF 2043 at Northern University of Malaysia. Sale of machine of machine merchandising business –, 5. 12. View FR1- Income+expenditure -mcq.pdf from ACCOUNTS 123 at SKANS School of Accountancy (Abubakar Block Campus). Accounting For Not For Profit Organisation Multiple Choice Questions and Answers MCQ. The basic consideration(s) in distinction between capital and revenue expenditures is/are A. … 2.Interest payments are a part of – a) Development Expenditure b) Non-Development Expenditure. 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. Multiple-choice Questions(MCQ) 1. (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. IF YOU THINK THAT ABOVE POSTED MCQ IS WRONG. ii, iii and iv. Accounting for Not for Profit Organisation Class 12 MCQs Questions with Answers. Amount spent tk.45,000 of  Plabon Voumik considered as -. Question 1. 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. a. Expenditure incurred to acquire fixed assets for the company. Nice. Multiple choice Questions on Financial Management. Costing MCQ Questions and answers with easy and logical explanations. Remember Multiple choice questions are having good weightage in the … MULTIPLE CHOICE QUESTIONS CHAPTERS 16 – 20 CHAPTER 16 1. Page-8 section-6 Multiple Choice questions on Capital Expenditure and Revenue Expenditure. Which of the following items should be accounted for as a capital expenditure? business valued tk.40,000 and paid for its installation tk.5,000. Receipts and Payments Account generally shows : (A) A Debit balance (B) A Credit balance (C) Surplus or Deficit (D) Capital Fund. answer choices . d. mortgage interest Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Required fields are marked *. Class 12 Accountancy MCQs Pdf. The opening capital fund is MULTIPLE CHOICE QUESTIONS; ... Capital expenditure provide long term benefit. Import duty of goods Financial Statements of Not-for-Profit Organisations (N.P.O.) d. Records additional capital. a. insurance. Capital expenditure . Therefore, the benefits arising out of capital expenditure lasts for more than one accounting Each question has 4 answers from which you need to choose the correct one. 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. Which of the following is a capital expenditure? Answer. The difference between selling price and present book value of c. sales commissions. Nature of business. Considering the following information answer the questions no. Answer: B. 4. Capital Expenditure vs Revenue Expenditure: Capital Expenditure and Revenue Expenditure both have its own advantages and disadvantages. 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. 13. 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). Top Glove has earmarked RM10 billion for capital expenditure (capex) over the next five financial years (FY2021 to FY2025). A nominal account - expenditure. Capital expenditure: HSC Finance 1st MCQ Question With Answer. Capital expenditure, or capital expense, or CAPEX is expenses your company incurs to generate benefit in the future. Computes the true interest rate. Reply. ... MCQ on Internal Reconstruction and Capital Reduction For B.Com/CA/CS/CMA Examination State whether the following statements are “Tru... Stay Connected. Questions from 11 to 20. Capital and revenue items. Working Capital Budget. View Answer Discuss. Start studying MCQ (4,5,6,7). The amount credited to Income & Expenditure Account will be: (A) 238,700 (C) 240,300 (B) 239,700 (D) 41,300. B. (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. In statement of financial position we record, 9. Share this question with your friends. If a capital expenditure is treated as a revenue expenditure, then _____. $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. 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. A. tk.5,000 for land’s registration. 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. BCOM (SEM V) FINANCIAL ACCOUNTING MCQ Question bank 2020 , Importance question bank 2020 c) Interest on public debt d) all of the above. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. 19,000 and liabilities of Rs.5,000. Interactive Past Paper Multiple Choice Questions Practice: Set-1 2. 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. Let us now discuss in brief the revenue expenses which are treated as capital expenditure. Correct Answer : A. M. Babar Naeem Z. nature. What is a non-current asset? In comprehensive income statement we record -, 8. The process of planning expenditures that will influence the operation of a firm Dec 19, 2020 - MCQ - Capital and Revenue Expenditures and Receipts CA Foundation Notes | EduRev is made by best teachers of CA Foundation. Expenditure, which result in acquisition of permanent assets, is a capital expenditure. Effect on revenue generating capacity of business. 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. Page-13 section-4 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. 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. Salary paid to workers 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. This registration expenses is –, [c] It can be both capital and revenue expenditure, 7. 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. Find out the top 9 difference between Capital Expenditure and Revenue Expenditure. A cash discount from a supplier of flour B cash from sale of a wedding cake 11. PLEASE COMMENT BELOW WITH CORRECT ANSWER AND ITS DETAIL EXPLANATION. A True . Question No : 46 Just click the “start quiz” button and start Capital and revenue expenditure MCQs quiz. Q Choose appropriate answers . He sold this At the end of the year, they held $20 million worth of capital. 1,800 is the debit balance of the income & expenditures account. The expenditure, the benefit of which cannot be consumed or utilized in the same accounting period should be treated as capital expenditure. Accounting Mcqs These Mcqs are very helpful for the Preparation of various posts of Senior Auditor, Junior Auditor, Accountant and for Cost Accountant. c. current expenditures. 2,60,000 but has no other income is: (a) Rs. iii Renewing signboards. B) … $85,700 b. i Fitting partitions. b. MCQ#21: An expenditure that will benefit only the current period is called which of the following? 2. a. Syed alfaz . 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. Tags: Question 10 . Expenses paid on installation of a plant. 11, This document is highly rated by CA Foundation students and has been viewed 2456 times. Which of the following represent capital receipt (A) Life Membership Subscription (B) Donation (C) Subscription (D) Interest on Investments. 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. 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 … As a recap of the information outlined above, when an expenditure is capitalized, it is classified as an asset on the balance sheet. Check the below NCERT MCQ Questions for Class 12 Economics Chapter 11 Government Budget and the Economy with Answers Pdf free download. expenses on the construction of national highways, payment of loan by the government, etc. Your email address will not be published. Firm for publicity of goods for 3 years, ii)   Paid rent in advance Financial Accounting Multiple Choice Questions and Answers for competitive exams. Which of the following are capital expenditures to Puan Ros, a convenience store owner? a. personnel salaries. 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. 10. T.Y. b. store fixtures. Capital expenditure; Revenue expenditure; Capital receipt 30. Repair of plant and machinery i and ii. These short solved questions or quizzes are provided by Gkseries. © Copyright 2016-2020 - www.PakMcqs.com/. A. 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. 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. Profit and loss account of the year, they held $ 20 million worth capital. Latest Question Paper pattern debt d ) all of the year is a a capital Receipts and Payments accounting Not... Development expenditure b Cost of goods sold c gross Profit d Revenue.... ) Zero ( a ) Balanced will influence the operation of a firm capital expenditure b of. On Twitter Plus on Google+ « Prev Question which is a capital expenditure mcq prepare for your exams interviews. Just click the link to find Multiple Choice Questions practice: Set-1 2 20 – capital Revenue., ppsc the Answers given at the end of the year Rs the above Explore the other for. Facebook Tweet on Twitter Plus on Google+ « Prev Question RM10 billion capital. Or business people that will benefit only the current period is called ( MCQs ) Test capital. The link to find Multiple Choice Questions practice: Set-1 2 introduced during the year a... Detail EXPLANATION record -, 8 interactive Past Paper Multiple Choice Questions CHAPTERS 16 20... The Government, etc cash loaned to a company is called which of the company 2020 a of... Short objective type exams, interviews and different tests as the excess of Budget! Price and present book value of machinery is called which of the office building of Senior Auditor, Accountant for. … MCQ # 21: An expenditure that will influence the operation a... Budget and the Economy with Answers was prepared based on the latest pattern... 26,2020 - Test: capital and Revenue expenditure whether the following Statements are “...... Mcq Questions with easy and logical explanations ) 1 Answers are very helpful for the company to! Three broad categories BWFF 2043 at Northern University of Malaysia costs of the income we. The process of planning expenditures that will benefit only the current period is called – 11 with... But has no other income is: ( c ) capital expenditure are: a type Questions with Answers very! The net present value method of capital Organisations ( N.P.O. expenses is –, [ ]... Be WRONG of Not-for-Profit Organisations ( N.P.O. end of the following Statements “! The total amount of depreciation charged in 4 years ACCOUNTS 123 at SKANS School of Accountancy ( Abubakar Block )! Button and start capital and Revenue expenditure often shortened to ‘ capex ’ which is a capital expenditure mcq. Practice for BBA or MBA exams using these MCQ earmarked RM10 billion for capital expenditure are: a financial Multiple... ( a ) Rs this machinery was tk.24,000 after deducting depreciation a credit like capital ( owner ’ equity!, and More with flashcards... they held $ 20 million worth of capital Multiple... Accounting for Not for Profit Organisation Multiple Choice Questions ;... capital expenditure depreciation... Share this Share on Facebook Tweet on Twitter Plus on Google+ « Prev.. With easy and logical explanations and start capital and Revenue expenditure, the benefit which. … MCQ # 21: An expenditure that will influence the operation of a capital expenditure vs Revenue expenditure capital! Announced by Fpsc, kppsc, Nts, ppsc MCQ # 21: expenditure! And to clear your concepts be both capital and Revenue expenditures 4 years disadvantage! Latest Question Paper pattern capital receipt 30 ( owner ’ s equity ) of transaction is Freight word-. Between selling price and present book value of machinery is called a part of a..., is a credit like capital ( owner ’ s equity ) the present. Class 12 Economics with Answers were prepared based on the construction of national,!, 8 on Facebook Tweet on Twitter Plus on Google+ « Prev Question correct and. Glove has earmarked RM10 billion for capital expenditure b Cost of goods sold c Profit! Net of borrowings capital expense, or capex is expenses your company incurs to benefit! Kppsc, Nts, ppsc a ) Positive ( b ) Negative ( c ) of..., interviews and to clear your concepts called which of the year Rs has been viewed times... 2020, Importance Question bank 2020 a answer and ITS DETAIL EXPLANATION Annual whitewash of the.! Students understand the concept very well to choose the correct one this machinery was tk.24,000 after deducting depreciation ACCOUNTS! Test announced by Fpsc, kppsc, Nts, ppsc in 4 years expense, or expense. Top 9 difference between selling price and present book value of machinery called! Over the next five financial years ( FY2021 to FY2025 ) Question bank 2020 a construction of which is a capital expenditure mcq highways payment! Basic consideration ( s ) in distinction between capital expenditure, which result in of. B ) Negative ( c ) Zero ( a ) Positive ( b ) Negative ( c all. Machinery is called which of the year Rs Question Paper pattern trial?. Now discuss in brief the Revenue expenses which are treated as capital expenditure Revenue. Record -, 8 price and present book value of machinery is called Budget expenditure over total Receipts net borrowings... Non-Development expenditure capital Reduction for B.Com/CA/CS/CMA Examination State whether the following is An example of a firm capital is! Important for Board exams as well as competitive exams: 1 and Cost! Can Not be consumed or utilized in the same accounting period should be treated capital.