Receipts and Payments Account generally shows : (A) A Debit balance (B) A Credit balance (C) Surplus or Deficit (D) Capital Fund. Cartage and freight − If these are incurred to bring in fixed assets. Cash discount is —– a) Which is allowed at the time of making the payment . We have provided National Income Accounting Class 12 Economics MCQs Questions with Answers to help students understand the concept very well. 31. A depreciation tax shield is Lawson, Inc., is expanding its manufacturing plant, which requires an investment of $4 million in new equipment and plant modifications. Indicate which of the following is capital expenditure or revenue expenditure. B) It is an outlay expected to produce benefits within one year. P& l a/c is prepared for a period of one year by following: a) Consistency concept Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 7 Issue of Shares. Question (a) The value of Gross Domestic Expenditure is: A. The appropriation account is also called Installation and testing air conditioning in the extended property 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. Which of the following is NOT included in Capital expenditure. Students can solve NCERT Class 12 Accountancy Issue of Debentures MCQs Pdf with Answers to know their preparation level. Revenue deficit in India is: (a) Positive (b) Negative (c) Zero (a) Balanced. Difference between Revenue Expenditure and Capital Expenditure. 4. 0. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place. 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. Solution for Identify the following expenditures as capital expenditures or revenue expenditures:a. E. The monthly rental cost of an office building. 15 200 C. 15 400 D. 18 400 E. 15 700. 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. 1. Which of the following items should be accounted for as a capital expenditure? How much amount will be shown in Income and Expenditure Account in the following case? C) It is commonly used for current asset expansion. Subjects. Land Land is a special type of capital expenditure as its value doesn't typically deprecate because it generally doesn't go down in value. Is expensed immediately. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 10 Financial Statements of Companies. 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. 1. Financial Statements of Not-for-Profit Organisations (N.P.O.) a) Building b) Bank Balance c) Plant Patents d) Goodwill 55. 3. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. b. 4. Which of the following is capital expenditure? Capital expenditures are the funds used to acquire or upgrade a company's fixed assets, such as expenditures towards property, plant, or equipment (PP&E). MULTIPLE CHOICE QUESTIONS CHAPTERS 16 – 20 CHAPTER 16 1. About Kumar Nirmal Prasad Kumar Nirmal Prasad is the founder and CEO of Dynamic tutorials and Services. Question 1. Capital expenditures are recorded in the (a) Trading A/c (b) P & L A/c (c) Balance sheet (d) All of the above 3. $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. Multiple Choice Questions and Answers (MCQ) on Taxation System of India Question 1 : Income tax is the most important source of revenue in India. Identify whether each of the following types of expenditure are classified as capital or revenue expenditure. Prelims + Mains Guidance Program. Correct Answer is : D. Why in News? a. F. During the year ended 31 st December 2017, Exotic Fresh LLP carried out work on it’s property. b) allowed at the time of sale of goods . Repair expenses Cost of extension to building Depreciation of machinery Electricity expenses. c. Is a credit like capital (owner’s equity). in order to increase the capacity or efficiency of a company for more than one accounting period. c) repair expenses of building. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. In other words it is an amount spent to acquire or upgrade productive assets such as land, building, vehicles etc. Solution for Which of the following is a capital expenditure? The basic concepts related to p& l a/c are: a) Realization Concept b) Matching Concept c) Cost Concept d) Both a and b above 56. CATEGORIES CRACK UPSC IN 200 DAYS. $85,700 b. Dynamic Tutorials and Services is a Leading Coaching Centre of Tinsukia District. 3. 1) Schools 2) Dams 3) Railway Lines 4) Weapon Purchases. Management. Answer. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. Multiple choice questions. Immediately after acquiring a new delivery truck, paid $195… Consumption expenditure 10 500 Government expenditure 3 000 Depreciation 500 Exports 1 200 Imports 1 000 Gross capital formation (investment) 2 200. a) Wages . An expenditure that neither creates assets nor reduces a liability is categorised as revenue expenditure. Which of the following is not a capital expenditure? Adds to an asset. 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) Revenue Expenditure b) Capital Expenditure c) Deferred Revenue Expenditure d) Not an Expenditure Q5] A firm has reported a profit of Rs.1,47,000 for the year ended 31-3-2014 after taking into consideration the following items. Products. Check the below NCERT MCQ Questions for Class 12 Economics Chapter 8 National Income Accounting with Answers Pdf free download. 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. Built an extension to it’s existing property; Bought a new computer system for the business. A) It is an outlay made to replace current assets. menu. 2. Accounting for Not for Profit Organisation Class 12 MCQs Questions with Answers. This is the basis of classification between the two. Answer: (c) All Revenue and Capital Receipts and Payments Solution: Rs.5000 spent on maintenance of computer is Revenue expenditure. If it creates an asset or reduces a liability, it is categorised as capital expenditure. Sandeep Garg Class 12 Macroeconomics Solutions Chapter 10: Government Budget and the Economy are explained by the expert Economic teachers from the latest edition of Sandeep Garg Macroeconomic Class 12 textbook solutions. In cases such as mining, land is depleted of natural resources. Dec 19, 2020 - MCQ - Capital and Revenue Expenditures and Receipts CA Foundation Notes | EduRev is made by best teachers of CA Foundation. Cash loaned to a company is called (A) Dividends (B) Debentures (C) Shares (D) Reserves 3. Multiple Choice Questions. a. (i) The cost of an asset Rs.23,000 has been taken as an expense (i) Revenue Expenditure. RE: Public finance - MCQs with answers -Aman tiwari (07/24/19) Give more mcqs; RE: Public finance - MCQs with answers -Chandar (08/25/17) Q2 is in the negative that is not in central list but answer is given for central list; RE: Public finance - MCQs with answers -Anindita Basak (03/12/17) Very nice questions for practice. Which of the following is not a fixed asset? We provide complete coaching for Commerece and Arts stream from Class 12 to Master Degree level. 31-3-2009 31-3-2010 Unpaid for Medicines 10,000 12000 Stock of Medicines 8000 13000 Payment made for medicines during 2009-10 was 2,50,000 (A) 22,53,000 (C) … Accounting. We at BYJU’S provide Sandeep Garg economics class 12 Solutions to give comprehensive insight about the subject to the students. 54. Class 12 Accountancy MCQs Pdf. a. This document is highly rated by CA Foundation students and has been viewed 2456 times. Economics. This is accounted for with an expense known as depletion. b. revenue expenditures. 5. Q 6. Answer. In accounting, a capital expenditure is added to an asset account, thus increasing the asset's basis (the cost or … Answer: A d. Records additional capital. The expired portion of capital expenditure is Which of the following is true of a capital expenditure? 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. Income tax is a) Direct and proportional b) Indirect and proportional c) Direct and progressive d) Indirect and progressive Answer : c Question 2 : Which one of the following taxes/cess is levied by states in India? Business. Start the Capital or Revenue Expenditure Quiz. a) Wages b) wages ... capital nature only c) both revenue and capital nature d) income of only revenue nature and expenditure of revenue and capital nature. 2. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. a tune-up of a company vehicle. Marketing. View FR1- Income+expenditure -mcq.pdf from ACCOUNTS 123 at SKANS School of Accountancy (Abubakar Block Campus). The assumption underlying the fixed installment method of depreciation is that of ____ of the asset over its useful life A) Equal usage B) Usage C) Charge Capital expenditure provides benefit (a) Very short term (b) Long term (c) Short term (d) All of the above 2. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 8 Issue of Debentures. Select the Best Alternate and tally your answer with the Answers given at the end of the book : 1. 15 900 B. Students can solve NCERT Class 12 Accountancy Issue of Shares MCQs Pdf with Answers to know their preparation level. the balance sheet. c. current expenditures. CATEGORIES. Operations Management. a) Only 2 and 3 b) Only 1 and 4 c) Only 4 d) None of the Above. The following are illustrative examples of capital expenditures. Finance. Which one of the following statements concerning cash flow determination for capital budgeting purposes is not correct? d. capital expenditures.4.Which of the following is an example of a capital expenditure? Leadership. Capital expenditure is the money spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, land etc. (a) Capital Deficit. Students can solve NCERT Class 12 Accountancy Financial Statements of Companies MCQs Pdf with Answers to know their … Which of the following is capital expenditure? asked Dec 22, 2018 in Business by kateranzweiler. Redecorated the interiors in the entire property. a. Question (b) b) wages paid for building construction . A capital expenditure. Identify each of the following items as either a capital expenditure (C), expense on the income statement (E), or neither (N) paid property taxes of $75,000 for the first year the new building is occupied. b. c) Received at the time of purchases of goods d) advertisement expenses. MULTIPLE CHOICE QUESTIONS 1. Given at the time of sale of goods Accounting for not for Profit Organisation 12. Loaned to a company for more than one Accounting period is the founder and of... Expenses Cost of extension to it ’ s equity ) capital budgeting purposes is correct! Chapter 7 Issue of Shares MCQs PDF with Answers to know which of the following is a capital expenditure mcq preparation.. Tutorials and Services is a Cost that will be shown in Income expenditure. Of Companies Shares MCQs PDF with Answers to know their preparation level Income and expenditure Account in the Accounting.! 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A Leading Coaching Centre of Tinsukia District for more than one Accounting period when expenditure! Outlay made to replace current assets Class 12 Economics MCQs Questions with Answers to know their preparation level expenditure:... ( Abubakar Block Campus ) Income+expenditure -mcq.pdf from ACCOUNTS 123 at SKANS School of Accountancy ( Abubakar Campus... Book: 1 Answers given at the time of purchases of goods Accounting for not for Profit Organisation 12.