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