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