B.COM AFM-1 (Capital Revenue Expenditure Receipt) MCQ's




Question 1 :
New tyres to replace old tyres of a car is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 2 :
Received interest on investment ` 2,500

  1. Revenue receipt
  2. Capital receipt
  3. Deferred revenue expenditure
  4. None of the above
  

Question 3 :
Wages paid for installation of machinery is a _____ expenditure.

  1. revenue
  2. capital
  3. None of the above
  4. deferred revenue expenditure
  

Question 4 :
An expenditure intended to benefit the current period is a revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 5 :
Amount spent on white washing of factory building done after every 6 months is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 6 :
Pre paid expenses are revenue expenses.

  1. TRUE
  2. FALSE
  

Question 7 :
Heavy expenses incurred on advertising at the time of introducing a new product is a deferred revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 8 :
Expenses for registration of the purchase of building is a revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 9 :
Expenses on extension of a gallery to the building is a revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 10 :
_____ receipts are shown as income in Profit - Loss Account.

  1. deferred revenue expenditure
  2. Capital
  3. Revenue
  4. None of the above
  

Question 11 :
Legal expenses incurred for abuse of trademark is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 12 :
Carriage on purchase of furniture is _____ expenditure.

  1. None of the above
  2. capital
  3. revenue
  4. deferred revenue expenditure
  

Question 13 :
Recovery of bad debts is a

  1. Capital receipt
  2. Revenue receipt
  3. Capital profit
  4. None of the above
  

Question 14 :
Addition of a computer lab to the building ` 60,000

  1. Revenue
  2. Capital
  3. D.R. Expenses
  4. None
  

Question 15 :
Amount paid for acquiring goodwill is deferred revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 16 :
Spent on umbrellas to employees ` 5,000

  1. Revenue expenditure
  2. Capital expenditure
  3. Deferred revenue expenditure
  4. None of the above
  

Question 17 :
Discount on issue of debentures is treated as

  1. Revenue expenditure
  2. Capital expenditure
  3. Deferred revenue expenditure
  4. None of the above
  

Question 18 :
Documentation charges regarding purchase of building is a _____ expenditure.

  1. revenue
  2. deferred revenue expenditure
  3. capital
  4. None of the above
  

Question 19 :
Temporary shed constructed to store material at project site is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 20 :
Repairs of machinery is a _____ expenditure.

  1. capital
  2. deferred revenue expenditure
  3. revenue
  4. None of the above
  

Question 21 :
Loan taken from bank is a

  1. Capital receipt
  2. Revenue receipt
  3. Revenue profit
  4. None of the above
  

Question 22 :
Repairs incurred before using a second hand car purchased is

  1. Revenue expenditure
  2. Capital expenditure
  3. Deferred revenue expenditure
  4. None of the above
  

Question 23 :
Wages for installation of machinery charged to revenue. The profit will

  1. Increase
  2. Decrease
  3. Remain constant
  4. All of the above
  

Question 24 :
Expenditure intended to benefit current period is a revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 25 :
Demolition cost of old building is a _____ _____ _____ .

  1. Capital expenditure
  2. Revenue expenditure
  3. None of the above
  4. deferred revenue expenditure
  

Question 26 :
Replacement of old tyres by new one

  1. Revenue
  2. Capital
  3. D.R. Expenses
  4. None of the above
  

Question 27 :
Hire charges of a special machine ` 20,500

  1. Revenue expenditure
  2. Capital expenditure
  3. Deferred revenue expenditure
  4. None of the above
  

Question 28 :
Share issue expenses may be treated as

  1. Deferred revenue expenditure
  2. Revenue expenses
  3. Added to face value of a share
  4. Deducted from face value of a share
  

Question 29 :
Spent to get a licence to run the factory ` 60,000

  1. Revenue expenditure
  2. Capital expenditure
  3. Deferred revenue expenditure
  4. None of the above
  

Question 30 :
Deferred revenue expenditure is current years revenue expenditure to be paid in the last year.

  1. TRUE
  2. FALSE
  
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