| 1 |
A revenue expenditure, the benefit of which is not confined to one accounting year is called |
- A. Non-current expenditure
- B. Revenue expenditure
- C. Future expenditure
- D. Deferred expenditure
|
| 2 |
Transaction, having short-term effects are known as |
- A. Revenue transaction
- B. Capital transaction
- C. Non-monetary transaction
- D. Paper transaction
|
| 3 |
An expenditure, which is completely exhausted with in the current accounting period is known as |
- A. Deferred expenditure
- B. Revenue expenditure
- C. Future expenditure
- D. Non-recurring expenditure
|
| 4 |
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
|
| 5 |
The amount invested by the owner in the business to produce revenue is known as |
- A. Income
- B. Asset
- C. Capital
- D. Liability
|
| 6 |
Expenditure is revenue expenditure because |
- A. It is intended to benefit the current period
- B. The amount involved is small
- C. It is deducted from the gross sale proceeds
- D. None of these
|
| 7 |
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
|
| 8 |
Wages paid for the construction of building is an example of |
- A. Revenue expenditure
- B. Capital expenditure
- C. Recurring expenditure
- D. Short-term expenditure
|
| 9 |
It is the price of goods sold or services provided by a business to its customers |
- A. Asset
- B. Cost
- C. Capital
- D. Revenue
|
| 10 |
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
|
