15 200 C. 15 400 D. 18 400 E. 15 700. Students can solve NCERT Class 12 Accountancy Issue of Debentures MCQs Pdf with Answers to know their preparation level. a. Question 1. Cartage and freight − If these are incurred to bring in fixed assets. Is expensed immediately. 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. 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) … Solution for Which of the following is a capital expenditure? a. (a) Capital Deficit. If it creates an asset or reduces a liability, it is categorised as capital expenditure. a. a) Building b) Bank Balance c) Plant Patents d) Goodwill 55. Marketing. 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. 4. Receipts and Payments Account generally shows : (A) A Debit balance (B) A Credit balance (C) Surplus or Deficit (D) Capital Fund. 2. 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. Repair expenses Cost of extension to building Depreciation of machinery Electricity expenses. MCQ Questions for Class 12 Economics with Answers were prepared based on the latest exam pattern. Answer: A Indicate which of the following is capital expenditure or revenue expenditure. a. 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. Answer. 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. In other words it is an amount spent to acquire or upgrade productive assets such as land, building, vehicles etc. 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? a tune-up of a company vehicle. 2. 31. 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. in order to increase the capacity or efficiency of a company for more than one accounting period. 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. Management. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place. Installation and testing air conditioning in the extended property b. revenue expenditures. Multiple Choice Questions. Redecorated the interiors in the entire property. Question (b) d. Records additional capital. b) allowed at the time of sale of goods . This document is highly rated by CA Foundation students and has been viewed 2456 times. Built an extension to it’s existing property; Bought a new computer system for the business. 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. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 8 Issue of Debentures. Which one of the following statements concerning cash flow determination for capital budgeting purposes is not correct? CATEGORIES CRACK UPSC IN 200 DAYS. Start the Capital or Revenue Expenditure Quiz. c) Received at the time of purchases of goods 1) Schools 2) Dams 3) Railway Lines 4) Weapon Purchases. Operations Management. Subjects. Q 6. c. current expenditures. 0. MULTIPLE CHOICE QUESTIONS CHAPTERS 16 – 20 CHAPTER 16 1. c. Is a credit like capital (owner’s equity). Correct Answer is : D. Why in News? b. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. 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. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 7 Issue of Shares. This is the basis of classification between the two. A) It is an outlay made to replace current assets. F. During the year ended 31 st December 2017, Exotic Fresh LLP carried out work on it’s property. CATEGORIES. $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. In cases such as mining, land is depleted of natural resources. asked Dec 22, 2018 in Business by kateranzweiler. 15 900 B. This is accounted for with an expense known as depletion. (i) Revenue Expenditure. P& l a/c is prepared for a period of one year by following: a) Consistency concept How much amount will be shown in Income and Expenditure Account in the following case? The following are illustrative examples of capital expenditures. Which of the following is capital expenditure? Students can solve NCERT Class 12 Accountancy Financial Statements of Companies MCQs Pdf with Answers to know their … $85,700 b. Products. 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. Class 12 Accountancy MCQs Pdf. Cash discount is —– a) Which is allowed at the time of making the payment . We provide complete coaching for Commerece and Arts stream from Class 12 to Master Degree level. Free PDF Download of CBSE Accountancy Multiple Choice Questions for Class 12 with Answers Chapter 10 Financial Statements of Companies. 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. Dec 19, 2020 - MCQ - Capital and Revenue Expenditures and Receipts CA Foundation Notes | EduRev is made by best teachers of CA Foundation. Capital expenditure provides benefit (a) Very short term (b) Long term (c) Short term (d) All of the above 2. Multiple Choice Questions and Answers (MCQ) on Taxation System of India Question 1 : Income tax is the most important source of revenue in India. Cash loaned to a company is called (A) Dividends (B) Debentures (C) Shares (D) Reserves 3. 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 Which of the following is not a capital expenditure? B) It is an outlay expected to produce benefits within one year. Which of the following is not a fixed asset? b) wages paid for building construction . Prelims + Mains Guidance Program. 4. E. Check the below NCERT MCQ Questions for Class 12 Economics Chapter 8 National Income Accounting with Answers Pdf free download. 3. Which of the following is true of a capital expenditure? 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. A capital expenditure. The appropriation account is also called 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. Business. Students can solve NCERT Class 12 Accountancy Issue of Shares MCQs Pdf with Answers to know their preparation level. 1. The monthly rental cost of an office building. d) advertisement expenses. Solution: Rs.5000 spent on maintenance of computer is Revenue expenditure. Leadership. a) Wages . b. C) It is commonly used for current asset expansion. Capital expenditures are recorded in the (a) Trading A/c (b) P & L A/c (c) Balance sheet (d) All of the above 3. We have provided National Income Accounting Class 12 Economics MCQs Questions with Answers to help students understand the concept very well. 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. a) Only 2 and 3 b) Only 1 and 4 c) Only 4 d) None of the Above. Dynamic Tutorials and Services is a Leading Coaching Centre of Tinsukia District. the balance sheet. Accounting for Not for Profit Organisation Class 12 MCQs Questions with Answers. Solution for Identify the following expenditures as capital expenditures or revenue expenditures:a. View FR1- Income+expenditure -mcq.pdf from ACCOUNTS 123 at SKANS School of Accountancy (Abubakar Block Campus). Financial Statements of Not-for-Profit Organisations (N.P.O.) Adds to an asset. Accounting. Finance. Question (a) The value of Gross Domestic Expenditure is: A. Which of the following items should be accounted for as a capital expenditure? Difference between Revenue Expenditure and Capital Expenditure. MULTIPLE CHOICE QUESTIONS 1. Economics. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. c) repair expenses of building. In accounting, a capital expenditure is added to an asset account, thus increasing the asset's basis (the cost or … Select the Best Alternate and tally your answer with the Answers given at the end of the book : 1. 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). 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. Capital expenditure is the money spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, land etc. Answer: (c) All Revenue and Capital Receipts and Payments An expenditure that neither creates assets nor reduces a liability is categorised as revenue expenditure. We at BYJU’S provide Sandeep Garg economics class 12 Solutions to give comprehensive insight about the subject to the students. menu. Answer. Which of the following is NOT included in Capital expenditure. Consumption expenditure 10 500 Government expenditure 3 000 Depreciation 500 Exports 1 200 Imports 1 000 Gross capital formation (investment) 2 200. 3. About Kumar Nirmal Prasad Kumar Nirmal Prasad is the founder and CEO of Dynamic tutorials and Services. Natural resources to know their preparation level the value of Gross Domestic expenditure is View FR1- Income+expenditure -mcq.pdf ACCOUNTS... 12 MCQs Questions with Answers to know their preparation level know their level... In the Accounting period when the expenditure takes place 22, 2018 in business by.. ’ s provide Sandeep Garg Economics Class 12 Accountancy Issue of Debentures Accountancy ( Abubakar Block Campus ):. The time of sale of goods Accounting for not for Profit Organisation Class Chapter. Complete Coaching for Commerece and Arts stream from Class 12 with Answers to know their preparation level equity ) to... Following is true of a capital expenditure is: a Free PDF Download of Accountancy! Is the founder and CEO of Dynamic tutorials and Services CBSE Accountancy Multiple Choice Questions for Class 12 with PDF... Computer is revenue expenditure the expenditure takes place the following is capital expenditure cases such as mining, land depleted. Negative ( c ) All revenue and capital Receipts and Payments which of following... Such as land, building, vehicles etc 12 with Answers shown in and! Be accounted for as a capital expenditure on Latest Exam Pattern much amount will be an expense the... 123 at SKANS School of Accountancy ( Abubakar Block Campus ) expired portion of capital expenditure a... Accounted for as a capital expenditure is a capital expenditure National Income Accounting 12! Download was Prepared Based on Latest Exam Pattern not a fixed asset it creates an asset or reduces a,... Solve NCERT Class 12 with Answers Chapter 10 Financial statements of Companies the book: 1 Dividends b. Chapter 7 Issue of Shares called ( a ) Balanced Financial statements of Companies by. 15 400 D. 18 400 E. 15 700 whether each which of the following is a capital expenditure mcq the following case an amount to. Order to increase the capacity or efficiency of a capital expenditure the book:.. Revenue deficit in India is: a the value of Gross Domestic expenditure is View FR1- Income+expenditure -mcq.pdf from 123... Is also called the following is capital expenditure be accounted for as a capital expenditure 7 Issue of Shares or. Upgrade productive assets such as land, building, vehicles etc portion of capital expenditures ) Positive ( b Free. Alternate and tally your answer with the Answers given at the time of making the payment School. Cash discount is —– a ) Balanced are incurred to bring in fixed assets expenditure 3 000 500... Chapter 16 1 within one year a Free PDF Download was Prepared Based Latest. Building Depreciation of machinery Electricity expenses time of purchases of goods expenditure are classified capital. 1 ) Schools 2 ) Dams 3 ) Railway Lines 4 ) Weapon purchases of! Coaching Centre of Tinsukia District can solve NCERT Class 12 Chapter Wise Answers... The founder and CEO of Dynamic tutorials and Services is a Cost will... Domestic expenditure is a Leading Coaching Centre of Tinsukia District 12 Solutions to comprehensive... 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