| 1 |
An expenditure, which is non-recurring and irregular is called |
- A. Capital expenditure
- B. Revenue expenditure
- C. Short-term expenditure
- D. Current expenditure
|
| 2 |
Octori duty paid on machinery, is an example of |
- A. Revenue expenditure
- B. Recurring expenditure
- C. Capital expenditure
- D. Both a & b
|
| 3 |
The amount invested by the owner in the business to produce revenue is known as |
- A. Income
- B. Asset
- C. Capital
- D. Liability
|
| 4 |
Distinction between capital and revenue items is important for the preparation |
- A. Balance sheet
- B. Trading and profit or loss a/c
- C. Bank reconciliation statement
- D. Both a & b
|
| 5 |
An expenditure, which is temporarily increase the profit making capacity of the business is called |
- A. Deferred expenditure
- B. Capital expenditure
- C. Revenue expenditure
- D. Non-recurring expenditure
|
| 6 |
All revenue expenditure are taken to |
- A. Trading a/c
- B. Trading & profit or Loss a/c
- C. Profit or loss a/c
- D. Balance sheet
|
| 7 |
The transactions, the effect of which is not exhausted with in the current accounting year are called |
- A. Revenue transaction
- B. Capital transaction
- C. Current transaction
- D. Monetary transaction
|
| 8 |
Expenditure is a capital expenditure because |
- A. The amount involved is heavy
- B. It is the personal expenditure of the owner out of his capital
- C. It is intended to benefit the future period
- D. It is a recurring expenditure
|
| 9 |
Bad debts are |
- A. Deferred expenditure
- B. Revenue expenditure
- C. Capital expenditure
- D. None of these
|
| 10 |
An expenditure, incurred to improve the position of the business is known as |
- A. Deferred expenditure
- B. Revenue expenditure
- C. Capital expenditure
- D. Recurring expenditure
|
