A. Client received insurance proceeds for loss of rent and for repairing the property following exposure to a Cannabis Plant. aishahkamal91_18762. D. Delivery costs on newly purchased equipment. Business. 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. Below are the example of capital expenditure: Repairs on purchase of second asset to put it in to working condition is a capital expenditure. What is an example of capital expenditure? Which of the following is capital expenditure? Revenue expenditures are often discussed in the context of fixed assets . 1. Capital expenditure may include the following expenditures:- Expenditure incurred on the acquisition of … 5) Electrical Re-wire. Capital expenditures are major investments of capital to expand a company's business. C. They reduce the profit of the concern. Revenue expenditure refers to those expenditures which are incurred during normal business operation by the company, benefit of which will be received in the same period and the example of which includes rent expenses, utility expenses, salary expenses, insurance expenses, commission expenses, manufacturing expenses, legal expenses, postage and printing … 6) New Carpets for upstairs. Revenue Expenditure is that expenditure which is recurring in nature and arises again and again. answer choices . 1st - University. They improve the financial position of the business. b) Subsidies. B. 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. Advertising. The benefit of the revenue expenditure is utilized in that period itself. 0. Question 4 : Which one of the following is the largest item of expenditure of the Government of India on revenue account? D. They do not appear in the balance sheet. The purchase of a pencil sharpener for $10 used in an office. Changing The Oil In A Vehicle Installation Of A Hydraulic Lift ORebuilding An Engine Installation Of A Security System. Examples of such expenses are wages, rent, power, bad debts, depreciation, telephone, printing, cost […] 3) Rubbish Clearance. Which of the following is a Revenue Expenditure? b) Paid for the certificate of entitlement of the new car. c) Pensions. Adding Air Conditioning To A Company Car B. This preview shows page 15 - 28 out of 34 pages. 71 times. Sales tax D) paymen of subscription. State with reasons whether the following should be considered as deferred revenue expenditure or capitalized expenditure. Question Which of the following is not a revenue expenditure ? 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. Options. Smaller-scale software initiative or subscription. A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place. Revenue expenses are short-term expenses to meet the ongoing operational costs of running a … Expert Answer . Which of the following should not be treated as a revenue expenditure? According to Kohler “It is an expenditure charged against operation; a term used to contrast with capital expenditure”. nurfitridewi95_51731. You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. Edit. The correct answer is C. Related: Practice and Prepare For Your Upcoming Exams; Previous Question. Capital Expenditure and Revenue Expenditure DRAFT. (c) Depreciation on fixed assets. These short solved questions or quizzes are provided by Gkseries. Which of the following is not a revenue expenditure? Insurance. Question: Which Of The Following Is A Revenue Expenditure? a) Defence. Rent on a property. Which of these is NOT a list of revenue expenditure? D. Small expenditures on long- lived assets, such as ` 20 for a paper weight. 56% average accuracy. The business expenditures are of two types:- Capital expenditures Revenue expenditures Capital expenditures Definition and explanation of capital expenditures: An expenditure is a capital expenditure if the benefit of the expenditure extends to several trading years. 3 months ago. Revenue expenditure definition: the amount of money spent by a business or organization on general operating costs such... | Meaning, pronunciation, translations and examples Practice following Capital and Revenue Expenditure Multiple choice questions. Which of the following is a capital expenditure? 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