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




Question 31 :
Invested in government securities

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

Question 32 :
Preliminary expenses are

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

Question 33 :
Commission received is a _____ receipt.

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

Question 34 :
Purchase of tools for servicing.

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

Question 35 :
` 10,000 spent on replacement of worn out part of machine is

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

Question 36 :
Hire charges of a machine is a

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

Question 37 :
Paid underwriting commission on issue of shares ` 20,000

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

Question 38 :
Recovery of bad debts during the year ` 3,500

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

Question 39 :
Spent on making an entrance for a cinema house ` 1,50,000

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

Question 40 :
Wages paid to workers to produce a tool is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 41 :
Installed a gas boiler ` 1,25,000

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

Question 42 :
Revenue expenditure increases the profit earning capacity of an organisation.

  1. TRUE
  2. FALSE
  

Question 43 :
Depreciation of fixed assets is

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

Question 44 :
Received from X Ltd. an invoice for ` 3,500 for repairs of walls of the office premises

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

Question 45 :
Pulling out old building and rebuilding it ` 2,50,000

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

Question 46 :
Fictitious assets are tangible.

  1. TRUE
  2. FALSE
  

Question 47 :
If capital expenditure is shown as revenue expenditure, Balance Sheet shows less assets.

  1. TRUE
  2. FALSE
  

Question 48 :
R - D expenditure is always

  1. Treated as intangible assets
  2. Treated as expenses
  3. Treated as deferred revenue expenditure
  4. None of the above
  

Question 49 :
Brokerage paid on purchase of land ` 10,000

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

Question 50 :
Repairs to machinery charged to machinery A/c. The profit will

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

Question 51 :
Expenditure on carriage of machinery is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 52 :
Bad debt recovery is a _____ receipt.

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

Question 53 :
If revenue expenditure is shown as capital expenditure, Profit - Loss Account shows more profit.

  1. TRUE
  2. FALSE
  

Question 54 :
Payment of penalty is a _____ expenditure.

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

Question 55 :
Wages paid for installation of machinery are debited to Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 56 :
Revenue expenditure shown as capital expenditure

  1. Increases profit
  2. Increases assets
  3. Increases profit and assets
  4. None of the above
  

Question 57 :
An error of principle results in incorrect allocation of expenditure between capital and receipt.

  1. TRUE
  2. FALSE
  

Question 58 :
_____ expenditure is recurring.

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

Question 59 :
Capital receipt is recurring in nature.

  1. TRUE
  2. FALSE
  

Question 60 :
Cost of repairing the building

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