(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. This problem has been solved! Examples of Revenue expenditures. Join now. 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. Show transcribed image text. 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… C. Legal expenses incurred to acquire the assets. Example of Revenue Expenditure. A) Enterprise Fund. 12. Revenue expenditure is incurred for the following purposes: (a) All establishment and other expenses incurred in the normal course of business. c) Pensions. Answers. Wages paid to factory workers. (c) The cost of removing plant and machinery to new site. 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. Examples: Following are the examples of revenue expenditure. (d) Payment made to purchase an existing business. 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. The debt ceiling permits borrowing for expenditures that have already been authorized by Congress and the president. 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. E) Permanent Fund. 1. See the answer. b) Paid for the certificate of entitlement of the new car. Revenue Expenditure is that expenditure which is recurring in nature and arises again and again. For instance, Administration expenses of the business, expenses incurred in manufacturing and selling products. Cost of goods sold. See below for the correct answer. Revenue Expenditure Example. Answer : d . Capital Expenditure and Revenue Expenditure DRAFT. (a) Cost of overhauling and painting a recently bought old van. 1) Payment of interest, 2) Purchase of a building, 3) Purchase of a machine, 4) Loans to State government, 5) NULL Which of the following is not a revenue expenditure? Which of the following ordinarily would be treated as a revenue expenditure rather than a capital expenditure? Which of the following should not be treated as revenue expenditure? (Based on the Question the answer is) Cost of extending office building/ Upgrading factory machine 7 months ago. Which of the following is a revenue expenditure? C) When they are available for recognition. The new machine requires routine maintenance of $3,000 each month. You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. Revenue expenditure is expenditure concerned with the costs of doing business on a day to day basis. B) When there is an enforceable legal claim. scrap value. (e) Carriage paid on purchase of goods. (b) Cost of pulling down an old building in order to replace it by a new one. All of the following are examples of revenue expenditures: Routine repair/update costs on equipment. These expenses are paid monthly, fortnightly, weekly, and daily. But the range is wider than that. Which of the following is revenue expenditure? Cost of issuing shares and debentures. 56% average accuracy. 3. D) Capital Projects Fund. Business. Which of the following is the single largest source of federal revenue? Salaries and wages. Social security. Generally, expenditure incurred on normal running of the government departments and maintenance of services is treated as revenue expenditure. Revenue expenditure is the expenditure incurred by the company during its ordinary course of business operations. Insurance. Edit. 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. Answer. These expenses help a business sustain its operations and may not result in an increase in revenue. replacement of a trucks battery. Revenue expenditure are those which are incurred during the normal course of business. Benefit period: Its benefits accrue for a long time to the business, say for 10 to 15 years. 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 Which of the following is considered a capital expenditure? The expenses are not done for the capitalization of an asset i.e. Repair and maintenance on buildings b. 2. 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. yes free samples are the best answer. Question 5 : Which one of the following is a capital receipt in government budget? nurfitridewi95_51731. The following features though not exhaustive helps to determine whether a particular expense could be categorized as revenue. When companies make a revenue expenditure, the expense provides immediate benefits, rather than long term ones. Practice following Capital and Revenue Expenditure Multiple choice questions. Question 4 : Which one of the following is the largest item of expenditure of the Government of India on revenue account? 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. Which of the following expenditures are capital or revenue, give your reasons? Question: Which Of The Following Is A Revenue Expenditure? Repairs on purchase of second asset to put it into working condition. Revenue expenditure definition: the amount of money spent by a business or organization on general operating costs such... | Meaning, pronunciation, translations and examples 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 . 7 months ago. Smaller-scale software initiative or subscription. Which of the following funds is most likely created with an endowed gift? repair of machinery, building, furniture etc. E) Permanent Fund. d) Bought air freshener for the new car. Changing The Oil In A Vehicle Installation Of A Hydraulic Lift ORebuilding An Engine Installation Of A Security System. A. c) Bought car cushion for the new car. d) Interest payments. Capital Expenditure may include the following: Capital Expenditure may include the following: Log in. 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. a. Deferred Revenue Expenditure: 1. Capital Expenditure and Revenue Expenditure DRAFT. B) Internal Service Fund. B. Rent on a property. 1st - University . C) Debt Service Fund. Edit. The construction of a new wing on an existing building is descried as an. Giving reasons categorise the following into revenue expenditure and capital expenditure. Rather it takes place to maintain the asset on an everyday basis e.g. Which statement is most accurate? 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. Which of the following is capital expenditure? 13. Join now. salvage value is to the same as . Revenue expenditure are debited to profit & loss account. a) Defence. Its benefits accrue to the business for a future period, say for 3 to 5 years. This is contrasted with capital expenditures, which are long term investments intended to help a business grow and thrive. individual income tax. 1. Examples of such expenses are wages, rent, power, bad debts, depreciation, telephone, printing, cost […] Is The Right Answer to the question Full Question with Answer : Which of the following is not a revenue expenditure? Answers. 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. 100% correct and accurate. 27 times. This expenditure might be written off in the same financial year or over a period of a few years. Answer A. a) Interest receipts on loans given by the government to other parties. A. addition. Preview this quiz on Quizizz. b) Subsidies. Recevez des mises à jour de vos candidatures et restez connecté. 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. 60. ADVERTISEMENTS: (b) Expenses incidental to the carrying of a business, the benefit of which is consumed within the accounting period. Conversion into Cash: It can be converted into cash at any time as these are usually investments in assets. Let's assume that a company made a capital expenditure of $100,000 to install a high efficiency machine. Interest on loans and debentures B. Save. Log in. Revenue from property taxes should be recorded in the General Fund A) When received. cost to acquire a printing press. Which of the following is capital expenditure? Previous question Next question Transcribed Image Text from this Question. Expert Answer . Play this game to review Business. Capital expenditure, as opposed to revenue expenditure, is generally of a one-off kind and its benefit is derived over several accounting periods. Which of the following is revenue expenditure?a) Demolition & dismantling expenses - 6263322 1. D. None of these. Which of the following is considered a revenue expenditure? Cost of extending office building/ Upgrading factory machine. Adding air conditioning to a company car B. Advertising. We can never convert these into cash. a) Purchase of new car for business manager. The tax code is indexed to compensate for. Expert Answer 100% (1 rating) Previous question Next question Get more help from Chegg. (i) Subsidies, (ii) Grants, (iii) Repayment of loan, and (iv) Construction of school building. purchase of a new car. Inflation. expenses incurred on the repairs of the said asset ; It is recurring in nature. Ask your question. 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. Remember Multiple choice questions are having good weightage in the total marks of … All establishment and other expenses incurred in manufacturing and selling products long time to the,. Plant and machinery to new site whether a particular expense could be categorized as revenue expenditure than. Expenditure is incurred for the capitalization of an asset i.e, is generally of one-off... Which one of the new machine requires routine maintenance of services is treated as.! ) Cost of overhauling and painting a recently Bought old van weekly, and daily to Multiple. Help a business, the benefit of which is recurring in nature the costs of doing business a! 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