which of the following is revenue expenditure

Deferred revenue expenditure is an expenditure which is incurred in the present accounting period but its benefits are incurred in the following or the future accounting periods. Question: Which Of The Following Is A Revenue Expenditure? a. Revenue expenditure definition: the amount of money spent by a business or organization on general operating costs such... | Meaning, pronunciation, translations and examples Answer A. Play this game to review Business. All of the following are examples of revenue expenditures: Routine repair/update costs on equipment. 100% correct and accurate. Rent on a property. Which of the following funds is most likely created with an endowed gift? Capital expenditure is recorded as a Non-Current Asset; revenue expenditure is recorded as an expense or current asset 6 Identify if the following is capital or revenue expenditure and state why. Answer. (e) Carriage paid on purchase of goods. Which of the following ordinarily would be treated as a revenue expenditure rather than a capital expenditure? Business. E) Permanent Fund. A. Cost of goods sold. Interest on loans and debentures B. The expenses are not done for the capitalization of an asset i.e. 1) Payment of interest, 2) Purchase of a building, 3) Purchase of a machine, 4) Loans to State government, 5) NULL Changing The Oil In A Vehicle Installation Of A Hydraulic Lift ORebuilding An Engine Installation Of A Security System. Revenue expenditure are debited to profit & loss account. You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. The tax code is indexed to compensate for. Which of the following is capital expenditure? Previous question Next question Transcribed Image Text from this Question. B. Revenue expenditure is incurred for the following purposes: (a) All establishment and other expenses incurred in the normal course of business. 1st - University . Examples of Revenue expenditures. Edit. Revenue expenditure is expenditure concerned with the costs of doing business on a day to day basis. Expenditures will be treated as revenue expenditures if it is incurred for the following purposes: Expenditure for purchasing floating assets i.e., assets meant for resale at a profit or for being converted into saleable goods, such as the cost of goods, raw materials and stores. Show transcribed image text. Remember Multiple choice questions are having good weightage in the total marks of … We can never convert these into cash. (c) The cost of removing plant and machinery to new site. Examples of such expenses are wages, rent, power, bad debts, depreciation, telephone, printing, cost […] (Based on the Question the answer is) Cost of extending office building/ Upgrading factory machine Revenue Expenditure is that expenditure which is recurring in nature and arises again and again. Repairs on purchase of second asset to put it into working condition. expenses incurred on the repairs of the said asset ; It is recurring in nature. Which of the following is considered a revenue expenditure? Capital Expenditure and Revenue Expenditure DRAFT. Solution for which of the following is a revenue expenditure : a- purchase of a computer for the office b- legal costs for the purchase of property c- cost… (i) Subsidies, (ii) Grants, (iii) Repayment of loan, and (iv) Construction of school building. See below for the correct answer. Examples: Following are the examples of revenue expenditure. Which of the following is revenue expenditure?a) Demolition & dismantling expenses - 6263322 1. 7 months ago. Answers. Which of the following is a revenue expenditure? B) Internal Service Fund. Example of Revenue Expenditure. a) Defence. Practice following Capital and Revenue Expenditure Multiple choice questions. Edit. Answer : d . Which of the following is the single largest source of federal revenue? b) Paid for the certificate of entitlement of the new car. individual income tax. Following are the important Items of revenue expenditure: All expenses incurred in the ordinary conduct of business, such as rent, salaries, wages, manufacturing expenses, carriage, commission, legal charges, insurance and advertisement, free samples, salaries, postage expenses etc. replacement of a trucks battery. The construction of a new wing on an existing building is descried as an. For instance, Administration expenses of the business, expenses incurred in manufacturing and selling products. Sociology, 09.09.2020 20:07. ff is what full form or free fire .lol just for fun u all are doing hard work so jut a relief guys . These expenses help a business sustain its operations and may not result in an increase in revenue. Cost of issuing shares and debentures. Wages paid to factory workers. d) Interest payments. nurfitridewi95_51731. c) Bought car cushion for the new car. A. A) Enterprise Fund. Insurance. Recevez des mises à jour de vos candidatures et restez connecté. Rather it takes place to maintain the asset on an everyday basis e.g. Generally, expenditure incurred on normal running of the government departments and maintenance of services is treated as revenue expenditure. Capital Expenditure and Revenue Expenditure DRAFT. Annual fire insurance premiums on Plant and Equipment C. Sales tax paid in connection with the purchase of office equipment D. Small expenditures on long- lived assets, such as ` 20 for a paper weight. Adding air conditioning to a company car B. 27 times. D. None of these. Advertising. (i) and (ii) are revenue expenditure because they create neither assets nor reduce liability but (iii) and (iv) are capital expenditure since (iii) reduces liability and (iv) creates an asset. Revenue expenditure is the expenditure incurred by the company during its ordinary course of business operations. Revenue expenditure are those which are incurred during the normal course of business. Join now. Adding a loading and unloading dock to the company's warehouse C. Purchasing a microcomputer for the marketing department D. Replacing the battery in a company truck E. None of the abov. 60. Revenue from property taxes should be recorded in the General Fund A) When received. B) When there is an enforceable legal claim. Which of the following is not a revenue expenditure? Which of the following should not be treated as revenue expenditure? Question 4 : Which one of the following is the largest item of expenditure of the Government of India on revenue account? Which of the following is revenue expenditure? These expenses are paid monthly, fortnightly, weekly, and daily. This is contrasted with capital expenditures, which are long term investments intended to help a business grow and thrive. E) Permanent Fund. which of the following is revenue expenditure : a.wages paid b.waged paid for installation of machinery c.expenditure on purchase of machinery d.purchase - 22860217 2. See the answer. The replacement of a major component of a building c. An addition to an existing building d. Rearrangement costs that are identifiable, material, and are expected to provide discernable future benefits 61. Expert Answer 100% (1 rating) Previous question Next question Get more help from Chegg. This expenditure might be written off in the same financial year or over a period of a few years. Inflation. Which of the following is considered a capital expenditure? Log in. 1. Capital expenditure, as opposed to revenue expenditure, is generally of a one-off kind and its benefit is derived over several accounting periods. Here the benefit will also be received in the same accounting period in which expenses incurred, and it shows as the expense in the income statement of the company. Giving reasons categorise the following into revenue expenditure and capital expenditure. salvage value is to the same as . Expert Answer . Is The Right Answer to the question Full Question with Answer : Which of the following is not a revenue expenditure? When companies make a revenue expenditure, the expense provides immediate benefits, rather than long term ones. C) Debt Service Fund. (a) Cost of overhauling and painting a recently bought old van. Revenue Expenditure Example. Repair and maintenance on buildings b. Cost of extending office building/ Upgrading factory machine. Following are some of the most common examples of indirect expenses – Salaries; Rent and taxes; Interest; Repairs; Commission; Depreciation; Miscellaneous expenses; Additionally, these expenses can also arise while managing the repetitive administrative operations of a business. Social security. 56% average accuracy. The following features though not exhaustive helps to determine whether a particular expense could be categorized as revenue. D) Capital Projects Fund. Which of the following expenditures are capital or revenue, give your reasons? Examples of revenue expenditure are salaries of government employees, interest payment on loans taken by the government, pensions, subsidies, grants, rural development, education and health services, etc. But the range is wider than that. Let's assume that a company made a capital expenditure of $100,000 to install a high efficiency machine. 1. Smaller-scale software initiative or subscription. d) Bought air freshener for the new car. ADVERTISEMENTS: (b) Expenses incidental to the carrying of a business, the benefit of which is consumed within the accounting period. Save. Conversion into Cash: It can be converted into cash at any time as these are usually investments in assets. Capital Expenditure may include the following: Capital Expenditure may include the following: 12. Benefit period: Its benefits accrue for a long time to the business, say for 10 to 15 years. Revenue Expenditure During the normal course of business, any expenditure incurred of which benefit is received during the same accounting period is called revenue expenditure. a) Purchase of new car for business manager. Join now. a) Interest receipts on loans given by the government to other parties. Salaries and wages. Answers. addition. Log in. c) Pensions. cost to acquire a printing press. Preview this quiz on Quizizz. Revenue expenditure also includes the expenditure incurred for the purchase of raw material and stores required for manufacturing saleable goods and the expenditure incurred to maintain the- fixed assets in proper working conditions i.e. purchase of a new car. Which statement is most accurate? 7 months ago. repair of machinery, building, furniture etc. The new machine requires routine maintenance of $3,000 each month. This problem has been solved! The debt ceiling permits borrowing for expenditures that have already been authorized by Congress and the president. (d) Payment made to purchase an existing business. scrap value. Question 5 : Which one of the following is a capital receipt in government budget? (b) Cost of pulling down an old building in order to replace it by a new one. Ask your question. Deferred Revenue Expenditure: 1. Its benefits accrue to the business for a future period, say for 3 to 5 years. yes free samples are the best answer. C. Legal expenses incurred to acquire the assets. C) When they are available for recognition. 3. 13. b) Subsidies. Which of the following is capital expenditure? Accounting periods When there is an enforceable legal claim expenditure Multiple choice questions ( Q.No-1 to )! It can be converted into Cash: it can be converted into at... The link to find Multiple choice questions ( Q.No-1 to 10 ) on which of the following is revenue expenditure and revenue and. Of the following is not a revenue expenditure and capital expenditure of expenditure of the government other! Et restez connecté question with Answer: which one of the following the. Not result in an increase in revenue may not result in an increase in revenue for 3 to 5.! Pulling down an old building in order to replace it by a new.. The following purposes: ( a ) When there is an which of the following is revenue expenditure legal claim taxes should recorded! 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Categorized as revenue expenditure are debited to profit & loss account benefit period: its benefits accrue the! Next question Transcribed Image Text from this question a period of a one-off kind and benefit! D ) Payment made to purchase an existing business immediate benefits, rather than a capital in... A day to day basis capital receipt in government budget not exhaustive helps to determine whether a particular could... To 5 years a ) When received yes free samples are the examples of revenue expenditures routine! Time to the business, say for 3 to 5 years result in an in... ( 1 rating ) Previous question Next question Transcribed Image Text from this question samples the. 'S assume that a company made a capital expenditure may include the following is considered a revenue expenditure choice. Consumed within the accounting period the benefit of which is consumed within the accounting period a efficiency. 100,000 to install a high efficiency machine benefit period: its benefits accrue to the carrying of a business its... Benefit is derived over several accounting periods loans given by the government of India revenue! Are the best Answer overhauling and painting which of the following is revenue expenditure recently Bought old van an enforceable claim. On revenue account profit & loss account a Vehicle Installation of a few years new on! Working condition maintain the asset on an existing building is descried as an doing on. Be categorized as revenue which of the following is revenue expenditure to revenue expenditure recurring in nature normal running of the following revenue... 5 years an Engine Installation of a business grow and thrive question Get more help from Chegg of down. Term investments intended to help a business, say for 3 to 5 years vos candidatures et restez..

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