Capital and revenue items

Multiple choice questions (MCQs)

An expenditure the benefit of which is enjoyed for more than one financial year is known as:

An expenditure that provides benefit for less than one financial period is known as:

Which of the following expenditures is a capital expenditure?

Which of the following expenditures is not a capital expenditure?

In accounting and finance, the inflows of economic resources which occur occasionally and which are normally non-recurring in nature are known as:

The inflows of economic resources that occur routinely through the ordinary course of business is known as:

Which of the following receipts is not a capital receipt?

Which of the following receipts is a capital receipt?

Which of the following is not a correct statement?

Which of the following will not be shown in the income statement?

The term “CapEx” is used for

Which one of the following is not a characteristic of capital profit?

The loss of building from fire is a

The Saffron Company bought a new machine for $25,000 and incurred $1,500 on its installation. How would the company classify two expenditures?

The Saffron Company paid $50,000 for a new machine purchased by it and paid $2,000 to a professional for installation. How would the company classify two payments?

Any expenditure incurred to install a new plant or machinery is classified as:

The unexpired portion of a capital expenditure is shown as:

The amount spent to increase the production capacity of plant and machinery is a:

On January 1, 2018, the Robert Trading Company buys a delivery truck for $20,000 and decides to depreciate it using straight line method of depreciation. The useful life of delivery truck is 10 years.

Based on the above information, the company’s expenditures relating to delivery truck during the year 2018 would be:

Depreciation on fixed assets is an example of:

The Maria Textile Company paid custom duty amounting to $5,000 on import of a latest machine. The payment of custom duty is a:

The expenditures like wages, salaries, freight, carriage, insurance, rent, depreciation etc. are examples of: