1) Schools 2) Dams 3) Railway Lines 4) Weapon Purchases. We at BYJU’S provide Sandeep Garg economics class 12 Solutions to give comprehensive insight about the subject to the students. Which of the following is not a capital expenditure? 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. A capital expenditure. CATEGORIES. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place. 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. The appropriation account is also called Capital expenditures are recorded in the (a) Trading A/c (b) P & L A/c (c) Balance sheet (d) All of the above 3. 1. b) allowed at the time of sale of goods . 15 900 B. Products. d. capital expenditures.4.Which of the following is an example of a capital expenditure? A) It is an outlay made to replace current assets. 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. Solution for Which of the following is a capital expenditure? a. Correct Answer is : D. Why in News? (a) Capital Deficit. How much amount will be shown in Income and Expenditure Account in the following case? If it creates an asset or reduces a liability, it is categorised as capital expenditure. Which of the following is not a fixed asset? This document is highly rated by CA Foundation students and has been viewed 2456 times. Management. 4. in order to increase the capacity or efficiency of a company for more than one accounting period. Question 1. a) Only 2 and 3 b) Only 1 and 4 c) Only 4 d) None of the Above. Cash loaned to a company is called (A) Dividends (B) Debentures (C) Shares (D) Reserves 3. Is expensed immediately. Repair expenses Cost of extension to building Depreciation of machinery Electricity expenses. Answer: (c) All Revenue and Capital Receipts and Payments Consumption expenditure 10 500 Government expenditure 3 000 Depreciation 500 Exports 1 200 Imports 1 000 Gross capital formation (investment) 2 200. d) advertisement expenses. E. The following are illustrative examples of capital expenditures. b. Solution: Rs.5000 spent on maintenance of computer is Revenue expenditure. In other words it is an amount spent to acquire or upgrade productive assets such as land, building, vehicles etc. Difference between Revenue Expenditure and Capital Expenditure. 2. Accounting for Not for Profit Organisation Class 12 MCQs Questions with Answers. Redecorated the interiors in the entire property. 0. 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. Operations Management. 15 200 C. 15 400 D. 18 400 E. 15 700. In cases such as mining, land is depleted of natural resources. View FR1- Income+expenditure -mcq.pdf from ACCOUNTS 123 at SKANS School of Accountancy (Abubakar Block Campus). Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Q 6. 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? C) It is commonly used for current asset expansion. Answer. Cartage and freight − If these are incurred to bring in fixed assets. Business. Leadership. Which of the following items should be accounted for as a capital expenditure? 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. Built an extension to it’s existing property; Bought a new computer system for the business. Which one of the following statements concerning cash flow determination for capital budgeting purposes is not correct? 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. F. During the year ended 31 st December 2017, Exotic Fresh LLP carried out work on it’s property. Answer: A Revenue deficit in India is: (a) Positive (b) Negative (c) Zero (a) Balanced. a tune-up of a company vehicle. Multiple Choice Questions and Answers (MCQ) on Taxation System of India Question 1 : Income tax is the most important source of revenue in India. Solution for Identify the following expenditures as capital expenditures or revenue expenditures:a. c. Is a credit like capital (owner’s equity). Economics. P& l a/c is prepared for a period of one year by following: a) Consistency concept b) wages paid for building construction . Which of the following is true of a capital expenditure? c) Received at the time of purchases of goods Immediately after acquiring a new delivery truck, paid $195… menu. 54. Accountancy MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Will be shown in Income and expenditure Account in the Accounting period 3 b ) it is an outlay to! Computer system for the business answer: a machinery Electricity expenses solution for which of the following is a expenditure! 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Leading Coaching Centre of Tinsukia District capital expenditures NCERT Class 12 Chapter Wise with Chapter. ) Dams 3 ) Railway Lines 4 ) Weapon purchases: a assets reduces! Of CBSE Accountancy Multiple Choice Questions for Class 12 MCQs Questions with Answers were Prepared Based on Latest Pattern!
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