The document is a questionnaire about classifying expenditures as capital or revenue. It asks questions to test understanding of capital expenditures being incurred to acquire or improve fixed assets and provide benefits over many years, while revenue expenditures are incurred to maintain assets or for routine expenses and provide benefits only in the period incurred. Capital expenditures result in increased asset values and earning capacity long-term, while revenue expenditures maintain existing capacity in the short-term.
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The document is a questionnaire about classifying expenditures as capital or revenue. It asks questions to test understanding of capital expenditures being incurred to acquire or improve fixed assets and provide benefits over many years, while revenue expenditures are incurred to maintain assets or for routine expenses and provide benefits only in the period incurred. Capital expenditures result in increased asset values and earning capacity long-term, while revenue expenditures maintain existing capacity in the short-term.
The document is a questionnaire about classifying expenditures as capital or revenue. It asks questions to test understanding of capital expenditures being incurred to acquire or improve fixed assets and provide benefits over many years, while revenue expenditures are incurred to maintain assets or for routine expenses and provide benefits only in the period incurred. Capital expenditures result in increased asset values and earning capacity long-term, while revenue expenditures maintain existing capacity in the short-term.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online from Scribd
The document is a questionnaire about classifying expenditures as capital or revenue. It asks questions to test understanding of capital expenditures being incurred to acquire or improve fixed assets and provide benefits over many years, while revenue expenditures are incurred to maintain assets or for routine expenses and provide benefits only in the period incurred. Capital expenditures result in increased asset values and earning capacity long-term, while revenue expenditures maintain existing capacity in the short-term.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online from Scribd
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Group 5
Classification of Capital And Revenue – Questionnaire
……………. incurred either for acquiring new fixed assets or for improving existing ones.
a) Capital expenditure b) Revenue expenditure c) Both
……………..incurred either for maintaining the existing fixed assets or for meeting the routine expenses of the business.
a) Capital expenditure b) Revenue expenditure c) Both
Amount spent on repairs of plant, furniture, buildings etc. is taken as
a) Capital expenditure b) Revenue expenditure c) Both
Transport charges incurred for a new plant & machinery is taken as
a) Capital expenditure b) Revenue expenditure c) Both
Which of the following is not a capital expenditure?
a) Purchase of plant b) Additions to existing assets
c) Selling and distribution expenses
When revenue expenditure becomes capital expenditure?
a) Repairs of plant, furniture etc
b) Immediate repairs of second hand plant, furniture etc c) None of the above
What is the role of incurring capital expenditure?
a) Increasing earning capacity of the business
b) Maintaining the existing earning capacity c)Both
Which expenditure yields the benefit for a maximum period of an accounting year
a) Capital expenditure b) Revenue expenditure c) Both
Which expenditure results in increase of the value of the assets?
a) Capital expenditure b) Revenue expenditure c) Both
The benefit of revenue expenditure is ……………
a) Available over a period of time
b) Restricted only to the accounting period in which it has incurred c) None Group 5
