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




Question 61 :
Amount received on sale of goods is a _____ receipt.

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

Question 62 :
Expenditure, which results in acquisition of a permanent asset, is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 63 :
_____ expenditure is shown in Profit - Loss Account.

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

Question 64 :
Whitewashing of a factory building is a

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

Question 65 :
Expenditure on documentation regarding purchase of building is a revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 66 :
Revenue expenditure is recurring in nature.

  1. TRUE
  2. FALSE
  

Question 67 :
_____ expenditure does not give any future benefits.

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

Question 68 :
Expenses incurred for purchase of livestock is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 69 :
Paid to an advocate to defend a suit claiming that the factory site belongs to the firm, the suit was unsuccessful

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

Question 70 :
Profit increases

  1. Capital
  2. Drawings
  3. Expenditure
  4. None of the above
  

Question 71 :
Cost of removal of stock from one place to another place.

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

Question 72 :
_____ receipts are shown in Balance Sheet.

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

Question 73 :
Amount paid for acquisition of patents is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 74 :
An expenditure is treated as capital when it

  1. Increases cost of fixed assets
  2. Increases life of fixed assets
  3. Increases profit earning capacity of the organisation
  4. All of the above
  

Question 75 :
Carriage on purchase of machinery charged to carriage. The profit will

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

Question 76 :
Wages paid for erection of machinery are debited to Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 77 :
_____ expenditure is shown in the Balance Sheet on asset side.

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

Question 78 :
The gain from sale of capital assets need not be added to revenue to ascertain the net profit of a business.

  1. TRUE
  2. FALSE
  

Question 79 :
Major repairs charges including replacement of certain worn out parts incurred before using a second hand car purchased recently is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 80 :
Amount written off from cost of the fixed asset is capital expenditure.

  1. TRUE
  2. FALSE
  

Question 81 :
Amount spent for replacement of worn out part of machine is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 82 :
Advertising is a _____ expenditure.

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

Question 83 :
Repairs of furniture is a capital expenditure.

  1. TRUE
  2. FALSE
  

Question 84 :
Capital expenditure shown as revenue expenditure

  1. Increases profit
  2. Decreases profits
  3. Decreases Net worth
  4. (b) and (c)
  

Question 85 :
Received on account of issue of debentures 4,00,000

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

Question 86 :
Heavy expenditure on advertising at the time of opening of a new branch is a deferred revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 87 :
Expenses incurred for obtaining a licence to start the factory ` 10,000

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

Question 88 :
Overhaul expenses of a second hand machinery purchased are revenue expenditure.

  1. TRUE
  2. FALSE
  

Question 89 :
Revenue expenditure is transfered to

  1. P - L A/c
  2. Balance Sheet
  3. P - L Appropriaton A/c
  4. None of the above
  

Question 90 :
_____ is expenditure on asset held for generation of interest / dividend.

  1. Dividend
  2. Revenue
  3. None of the above
  4. Investment
  
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