CBSE Questions for Class 10 Elements Of Book Keeping And Accountancy Capital And Revenue Quiz 1 - MCQExams.com

Insurance expenses paid to bring an equipment from the place of purchase to the place of installation is a type of ____________.
  • Revenue expenditure
  • Capital expenditure
  • Deferred revenue expenditure
  • Operating expense
Expenses incurred on research and development is an example of __________.
  • Capital Expenditure
  • Revenue Expenditure
  • Deferred Revenue Expenditure
  • None of the above
Any amount received towards an endowment fund is a __________ receipt.
  • Ordinary
  • Special
  • Revenue
  • Capital
Profit from sale of assets is example for __________.
  • revenue profit
  • capital profit
  • loss
  • none of the above
The cash price of a machine is Rs. 1,20,000 and its hire purchase price is Rs. 1,50,000 to be paid in five equal yearly installments. If a company purchases the machine on hire purchase basis, the amount of capital expenditure will be _______________.
  • Rs. 1,20,000
  • Rs. 1,35,000
  • Rs. 1,50,000
  • Rs. 1,60,000
Premium received on issue of shares is a __________.
  • Capital receipt
  • Revenue receipt
  • Deferred capital receipt
  • Deferred Revenue Receipt
Legal expenses in respect of claims of an insurance company is shown in _________.
  • P&L a/c
  • Revenue a/c
  • Balance sheet
  • Surplus a/c
Which of the following should not be called as sales?
  • Good sold on credit
  • Office fixtures sold
  • Sale of item previously included in purchase
  • Good sold for cash
Rs. 500 spent on servicing office type writer should be debited to _________.
  • Expenses Account
  • Type writer Account
  • Repairs Account
  • Services Account
Which of the following expenses should not be treated as capital expenditure?
  • Expenses paid on installation of a plant
  • Cost of dismantling a building in case a new building is to be constructed on the land
  • Legal expenses incurred to defend a suit related to title of patent. The suit has been lost
  • The fees paid to engineer who constructed the plant
Proprietor's contribution to the business _____________.
  • Loan
  • Drawings
  • Profit
  • Capital
Which of the following receipts is of capital nature?
  • Amount realized from sale of old furniture.
  • Amount received from debtor whose account was previously written off as bad.
  • Amount of interest accrued on a fixed deposit with bank.
  • Amount realized from debtors against their debts.
Which of the following receipts is of revenue nature ?
  • Amount realized from sale of investments
  • Divided received on investments
  • Amount borrowed from a bank
  • Compensation received from municipal corporation
Type of receipt which do not imply an obligation to return money are called ___________.
  • Revenue receipt
  • Capital receipt
  • Both (A) & (B)
  • None of the above
Which of the following is a deferred revenue expenditure?
  • Legal expenses incurred on the purchase of land.
  • Expenses on a mega advertisement campaign while launching a new product.
  • Expenses incurred on installation of a new machine.
  • Wages paid for construction of an additional room in the building.
If the dividend yield for a firm is 0.3 whose P/E multiple and EPS are 3 and Rs. 6 respectively., the dividend per share of the firm is ______.
  • 18.5
  • 6
  • 5.4
  • 0.6
  • 0.16
Revenue expenditure is_______ in nature. 
  • capital
  • outstanding
  • recurring
  • contingent
The term Capital Expenditure is generally used to signify that expenditure which_______.
  • increase quality of Fixed Asset
  • increase quantity of Fixed Asset
  • results in improvement/replacement of fixed asset
  • all the three
Which of the following items are capitalized in the cost of the fixed asset?
  • Financing cost relating to deferred credits attributable to acquisition of fixed asset for the period upto completion of fixed asset
  • Financing cost on monies borrowed for acquisition of fixed asset relating to period after such asset is ready to put to use
  • Administration and general charges
  • All of the above
An amount of Rs. 1,25,000 spent on travelling expenses of the company's directors to a foreign trip for purchase of a plant and machinery is a ________.
  • Capital Expenditure
  • Revenue Expenditure
  • Deferred Revenue Expenditure
  • None of the above
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Practice Class 10 Elements Of Book Keeping And Accountancy Quiz Questions and Answers