Repair and maintenance on buildings b. cost to acquire a printing press. Which of the following is capital expenditure? E) Permanent Fund. Edit. 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. B) Internal Service Fund. Save. 1st - University . 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… Revenue expenditure is expenditure concerned with the costs of doing business on a day to day basis. Revenue expenditure are debited to profit & loss account. 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. Cost of extending office building/ Upgrading factory machine. Advertising. Conversion into Cash: It can be converted into cash at any time as these are usually investments in assets. Which of the following is the single largest source of federal revenue? Business. A. (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. C. Legal expenses incurred to acquire the assets. This expenditure might be written off in the same financial year or over a period of a few years. 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. Play this game to review Business. 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. 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 . 13. 2. Which of the following is considered a capital expenditure? expenses incurred on the repairs of the said asset ; It is recurring in nature. Edit. Is The Right Answer to the question Full Question with Answer : Which of the following is not a revenue expenditure? Revenue Expenditure Example. b) Paid for the certificate of entitlement of the new car. The tax code is indexed to compensate for. Which of the following should not be treated as revenue expenditure? Answer A. a. Insurance. 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. 3. Cost of issuing shares and debentures. See the answer. individual income tax. We can never convert these into cash. E) Permanent Fund. purchase of a new car. salvage value is to the same as . Interest on loans and debentures B. a) Defence. Deferred Revenue Expenditure: 1. C) When they are available for recognition. Examples of Revenue expenditures. 1) Payment of interest, 2) Purchase of a building, 3) Purchase of a machine, 4) Loans to State government, 5) NULL replacement of a trucks battery. But the range is wider than that. Generally, expenditure incurred on normal running of the government departments and maintenance of services is treated as revenue expenditure. (e) Carriage paid on purchase of goods. Revenue expenditure is the expenditure incurred by the company during its ordinary course of business operations. 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. Show transcribed image text. Cost of goods sold. Which of the following ordinarily would be treated as a revenue expenditure rather than a capital expenditure? Revenue expenditure is incurred for the following purposes: (a) All establishment and other expenses incurred in the normal course of business. Revenue Expenditure is that expenditure which is recurring in nature and arises again and again. 1. Previous question Next question Transcribed Image Text from this Question. Expert Answer . (d) Payment made to purchase an existing business. Revenue expenditure are those which are incurred during the normal course of business. repair of machinery, building, furniture etc. b) Subsidies. c) Pensions. Ask your question. These expenses are paid monthly, fortnightly, weekly, and daily. Salaries and wages. a) Interest receipts on loans given by the government to other parties. (b) Cost of pulling down an old building in order to replace it by a new one. 60. Preview this quiz on Quizizz. scrap value. Recevez des mises à jour de vos candidatures et restez connecté. Log in. addition. Join now. Which of the following funds is most likely created with an endowed gift? Example of Revenue Expenditure. Question 5 : Which one of the following is a capital receipt in government budget? Capital Expenditure and Revenue Expenditure DRAFT. Repairs on purchase of second asset to put it into working condition. Benefit period: Its benefits accrue for a long time to the business, say for 10 to 15 years. Capital Expenditure may include the following: Capital Expenditure may include the following: Question 4 : Which one of the following is the largest item of expenditure of the Government of India on revenue account? Which of the following is capital expenditure? 56% average accuracy. d) Interest payments. Smaller-scale software initiative or subscription. 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. Changing The Oil In A Vehicle Installation Of A Hydraulic Lift ORebuilding An Engine Installation Of A Security System. A. The debt ceiling permits borrowing for expenditures that have already been authorized by Congress and the president. Revenue expenditure definition: the amount of money spent by a business or organization on general operating costs such... | Meaning, pronunciation, translations and examples Which of the following is considered a revenue expenditure? Remember Multiple choice questions are having good weightage in the total marks of … Expert Answer 100% (1 rating) Previous question Next question Get more help from Chegg. Which of the following is not a revenue expenditure? Rent on a property. This problem has been solved! 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 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. D) Capital Projects Fund. 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