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. Benefit period: Its benefits accrue for a long time to the business, say for 10 to 15 years. addition. For instance, Administration expenses of the business, expenses incurred in manufacturing and selling products. The expenses are not done for the capitalization of an asset i.e. Answers. 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… Edit. E) Permanent Fund. Cost of goods sold. d) Bought air freshener for the new car. B) When there is an enforceable legal claim. Which of the following expenditures are capital or revenue, give your reasons? Save. Capital Expenditure and Revenue Expenditure DRAFT. Its benefits accrue to the business for a future period, say for 3 to 5 years. You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. 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. Answers. Capital expenditure, as opposed to revenue expenditure, is generally of a one-off kind and its benefit is derived over several accounting periods. Insurance. Which of the following is revenue expenditure?a) Demolition & dismantling expenses - 6263322 1. Log in. This problem has been solved! 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. All of the following are examples of revenue expenditures: Routine repair/update costs on equipment. 2. Giving reasons categorise the following into revenue expenditure and capital expenditure. (e) Carriage paid on purchase of goods. Cost of extending office building/ Upgrading factory machine. The tax code is indexed to compensate for. Ask your question. Repair and maintenance on buildings b. When companies make a revenue expenditure, the expense provides immediate benefits, rather than long term ones. 7 months ago. salvage value is to the same as . See the answer. Which of the following should not be treated as revenue expenditure? Play this game to review Business. Remember Multiple choice questions are having good weightage in the total marks of … Recevez des mises à jour de vos candidatures et restez connecté. Repairs on purchase of second asset to put it into working condition. individual income tax. 12. A. c) Pensions. 1st - University . Revenue expenditure is the expenditure incurred by the company during its ordinary course of business operations. Which of the following funds is most likely created with an endowed gift? Which of the following is considered a revenue expenditure? B. (b) Cost of pulling down an old building in order to replace it by a new one. Smaller-scale software initiative or subscription. Which of the following is revenue expenditure? Which of the following is a revenue expenditure? A. 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. 1. Practice following Capital and Revenue Expenditure Multiple choice questions. D. None of these. b) Subsidies. Answer : d . scrap value. c) Bought car cushion for the new car. Edit. (a) Cost of overhauling and painting a recently bought old van. yes free samples are the best answer. D) Capital Projects Fund. Examples of such expenses are wages, rent, power, bad debts, depreciation, telephone, printing, cost […] (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. Rather it takes place to maintain the asset on an everyday basis e.g. Example of Revenue Expenditure. 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. 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. Answer. Generally, expenditure incurred on normal running of the government departments and maintenance of services is treated as revenue expenditure. Previous question Next question Transcribed Image Text from this Question. Revenue Expenditure Example. The following features though not exhaustive helps to determine whether a particular expense could be categorized as revenue. Examples of Revenue expenditures. Which of the following is capital expenditure? Revenue expenditure is incurred for the following purposes: (a) All establishment and other expenses incurred in the normal course of business. E) Permanent Fund. Expert Answer 100% (1 rating) Previous question Next question Get more help from Chegg. Answer A. Revenue expenditure is expenditure concerned with the costs of doing business on a day to day basis. Which of the following is considered a capital expenditure? (c) The cost of removing plant and machinery to new site. Revenue expenditure definition: the amount of money spent by a business or organization on general operating costs such... | Meaning, pronunciation, translations and examples 13. 60. Join now. Changing The Oil In A Vehicle Installation Of A Hydraulic Lift ORebuilding An Engine Installation Of A Security System. 100% correct and accurate. 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. A) Enterprise Fund. Revenue from property taxes should be recorded in the General Fund A) When received. Rent on a property. a) Interest receipts on loans given by the government to other parties. Business. a. Cost of issuing shares and debentures. Log in. Revenue expenditure are debited to profit & loss account. But the range is wider than that. Conversion into Cash: It can be converted into cash at any time as these are usually investments in assets. Inflation. 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. Which statement is most accurate? Salaries and wages. d) Interest payments. Wages paid to factory workers. 27 times. This is contrasted with capital expenditures, which are long term investments intended to help a business grow and thrive. Question 4 : Which one of the following is the largest item of expenditure of the Government of India on revenue account? 56% average accuracy. a) Purchase of new car for business manager. Which of the following is capital expenditure? Considered a revenue expenditure Multiple choice questions Lift ORebuilding an Engine Installation a! ( b ) When received repairs of the following is not a revenue expenditure Multiple choice questions ( Q.No-1 10. Other parties it is recurring in nature and arises again and again the said asset ; is. 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