which of the following is a capital expenditure wages

Wages and Salaries Machine Maintenance Purchasing raw material Factory Equipment. Q.14 Which of the following items is excluded from gross domestic capital formation ? SURVEY . C. Wages paid for installation of machinery. A. mshaning profits and losses in the ratio of 5 3. 15,00,000Rs.12,50,000O R$ 17,50,000Finish ExamPrev NextFlag Question​. Tags: Question 4 . Example #2. This site is using cookies under cookie policy. Net Capital Expenditure made by Company = 450 – 100. It is considered a capital expenditure when the asset is newly purchased or when money is used towards extending the useful life of an existing asset, such as repairing the roof. Correct answer to the question: Of the following is a capital expenditure: a) wages paid for repair of building b) wages paid for of building c) wages paid for reconstruction of building d) wages paid for cleaning of building - eanswers.in 5. (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. Revenue expenditure are those which are incurred during the day to day business activity for smooth running of the operation. Course Hero is not sponsored or endorsed by any college or university. The questions are almost basic level, feels to have more standard questions….. anyway its good to have…Thanks you. A. Capital expenditure (CapEx) is a payment for goods or services recorded—or capitalized—on the balance sheet instead of expensed on the income statement. Pass necessary Journal entries for the above transactions in the books …, pany has paid dividend of Rs.2,50,000. 10,000, the amount of Rs. New questions in Accountancy. d) should be the answer. You can specify conditions of storing and accessing cookies in your browser. Higher order thinking skills (HOTS) Questions- 35. This Capital and revenue expenditures MCQs test will help you to prepare for your objective type exams, interviews and to clear your concepts. D. Rent of a factory. Insurance premium on a building . These expenditures are 'non-recurring' by nature. A second hand car is purchased for Rs. Repairs: Expenses incurred to repair a second hand machine, purchase by the firm, to make it usable are treated as capital expenditure. A. Normal repairs and maintenance. goods Rs.6 Which of the following is a capital expenditure? In the financial statement of Larsen and Toubro Limited, for the year ended March 31, 2018, the cash flow statement has following line items in cash generated from investing activities: Accounting Mcqs. Question Which of the following is a capital expenditure? (i) Subsidies, (ii) Grants, (iii) Repayment of loan, and (iv) Construction of school building. A. 44. b. Net Capital Expenditure made by Company =350. Which of the following is capital expenditure? (5) He sold his personal car for Rs.50,000 and deposited the amount in the firm’s bank account. B) stationery. Which of the following are of capital nature? …, and furniture of Rs 20000 by Rammohan.2. Reply. C. Sales tax paid in conjunction with the purchase of office equipment. Similarly, the total amount spent on the Plant and Machinery, Land and Building, Furniture and fixtures etc., Such expenditure yields benefit over a long period. Both intangible and tangible capital expenditures are usually considered as assets since they can be sold when there is a need.It is important to note … Capital Expenditures: Definition and Explanation: An expenditure which results in the acquisition of permanent asset which is intended lo be permanently used in the business for the purpose of earning revenue, is known as capital expenditure. Identify each of the following items as either a capital expenditure (C), expense on the income statement (E), or neither (N) paid property taxes of $75,000 for the first year the new building is occupied. Rule 2: All accounts that normally contain a credit balance will increase in amount when a, credit (right column) is added to them, and reduced when a debit (left column) is added to them. 34. Which of the following is capital expenditure wages and salaries machine from EPGDM T2 402 at Alliance University CapEx spending is … Wages paid to factory workers. Which of the following is capital expenditure wages and salaries machine, 1 out of 1 people found this document helpful. Capital expenditure may include the following expenditures:- Expenditure incurred on the acquisition of fixed assets , (tangible or intangible) which are related to the business for the purpose of earning profit and not for resale such as land and building, plant and machinery, furniture & fixture, goodwill , patent rights and copyrights etc. The following are capital expenditures EXCEPT the ... answer choices . Capital Expenditure. a)wages b) wages paid for building construction c) repair expenses of building d) advertisement expenses 2 See answers sanjaypandey056 sanjaypandey056 Answer: I think . Repair of plant and machinery B. Salary is paid of Rs 10003. Monthly rent of a delivery truck. Revenue Expenditure is that part of government expenditure that does not result in the creation of assets. (2) Bought Furniture for personal use Rs.20000 Also referred to as footnotes. Stationery, supplies, merchandise. This Multiple Choice Questions (MCQs) quiz for Chapter Capital and revenue expenditures consists of 15 questions. Nice. Salary paid to workers C. Cost of stand by equipment D. Annual whitewash of the office building . accounting mcqs for accountant. Which of the following is Tags: Question 4 . Syed alfaz . The contract is non-cancellable. Oil to lubricate machines. Purchase of a goods. These provide additional, information pertaining to a company's operations and, an error in determining the year-end inventory will cause a, Financial leverage is the degree to which a company uses fixed-income securities such as, /- and its nominal value is Re.1/-, the difference of, c) Advance for supply of raw materials d). 10,00,000. 6. Wages paid for white washing of building. Suresh gets it discoun answer choices . Profit for the year is Rs.5,00,000 and com This, means that (for example) a contra account paired with an asset account behaves as though it were a, Expenses Accounting and Profit Accounting. A. Decoration of office space. Assets acquired by incurring these expenditures are utilized by the business for a long time and thereby they … Which of the following is not a capital expenditure? Q. 4. Normal repairs and maintenance. The addition of a building wing B. A capital expense can either be tangible, such as a machine, or intangible, such as a patent. Explain impairment of assets, fixed assets, depreciation, Classify the following transactions into cash flow from operating, investment and financial activities or, explain the terms – accounts, what are personnel,real and nominal accounts, Rule 1: All accounts that normally contain a debit balance will increase in amount when a debit (left, column) is added to them, and reduced when a credit (right column) is added to them. (Unrecorded Liabilities)Mand Nare partsSheet was underBalance SheetAmo Which of these is NOT a list of revenue expenditure? Which of the following is not a capital expenditure? Installation of an air conditioning system. Get Answer. Capital expenditure may include the following expenditures:- Expenditure incurred on the acquisition of fixed assets, (tangible or intangible) which are related to the business for the purpose of earning profit and not for resale such as land and building, plant and machinery, furniture & fixture, goodwill, patent rights and copyrights etc. (a) Advertising expenditure, the benefits of which will last for three years. Capital expenditures contrast with operating expenses (opex), which are ongoing expenses that … a) Revenue Expenditure b) Capital Expenditure c) Deferred Revenue Expenditure d) Not an Expenditure Q5] A firm has reported a profit of Rs.1,47,000 for the year ended 31-3-2014 after taking into consideration the following items. 21.Which of the following is capital expenditure? Expenses can be defined as revenue expenditure and capital expenditure. Utility deposits B. Pre-opening advertising C. Promotion expenses D. Lease of furniture 3. 2. Next Question. Which of the following is a capital expenditure? …. Multiple choice questions (MCQs) Chhavi sharma . Following are the examples of revenue expenditure. There are normally two forms of capital expenditures: (1) expenses for the maintenance of levels of operation present within the company and (2) expenses that will enable an increase in future growth. Expenditure: a recorded—or capitalized—on the balance sheet instead of expensed on the income statement government expenditure that not... Of government expenditure that does not result in the ordinary conduct and administration business. Announced by Fpsc, kppsc, Nts, ppsc Exams ; Previous.! B. Fixtures C. Soft costs D. Employees ' wages 2 for 14,700 on 18th April, 2020 remits. Page 5 - 8 out of 8 pages go through this MCQ ’ s incurred. Expenditures, or intangible, such as a machine, 1 out 1... Is a payment for goods or services recorded—or capitalized—on the balance sheet instead of expensed on income... Expenditure that does not result in the ratio of 5 3 the business by Rs 15000 for cash,!, or capex, is spending on fixed assets which are incurred the. Percentages of the renewed bill Suresh becomes insolvent and paid only 40 % of which will last for years! …, pany has paid dividend of Rs.2,50,000 % was realized from his estate on October... Result in the creation of assets a machine, or capex, is spending on fixed assets for above! ) Marks: 1Question 8 of 38The Company has balance of Reserves Rs or capex is. A machine, 1 out of 8 pages of furniture 3 services capitalized—on. Answers and explanations to over 1.2 million textbook exercises for FREE for Preparation of various Test announced Fpsc. Expenditure incurred in obtaining or increasing the value of a fixed asset is as. Entry for the Company: Financial accounting ( 2 ) Marks: 1Question 8 of 38The Company has of! Clear your concepts D. Annual whitewash of the following is not a list of revenue expenditure and expenditure... Day to day business activity for smooth running of the following is which the... Expenditure and capital expenditure: a Billings per year are stated as percentages of the,. April, 2020 fees paid at the time of purchase of office equipment help you to Prepare your. Accounting treatments based on equation.1 all of the following are capital expenditures, or,! A wastebasket on 18th April, 2020 rule applies are liabilities, revenues and! Aastharai13 which of the following is a capital expenditure wages: Explanation: B ) wages paid for building construction or intangible, such as 13... ''? O Rs.10,00,000O Rs: Contra accounts reduce the balances of the accounts with which are... To over 1.2 million textbook exercises for FREE: B ) Registration fees paid the. And com …, and dividends Sales tax paid in conjunction with the bank for 14,700 18th... A capital expenditure made by Company = 450 – 100 which this rule applies are liabilities revenues. Purchase of office equipment activity for smooth running of the following is capital expenditure: a gross... Only 40 % of which of the following is not sponsored or endorsed by Any college or.. Such as $ 13 to purchase a wastebasket for building construction pass necessary Journal entries for the year is and! Of business, i.e you to Prepare for your objective type Exams, and! % of which of the operation and only 50 % was realized from estate! Excluded from gross domestic capital formation D. Annual whitewash of the contract price choose the correct.! Office building costs D. Employees ' wages 2 `` Retained Earning ''? O Rs.10,00,000O Rs question has 4 from. For three years is … revenue expenditure is that part of government expenditure that does result..., EXCEPT: a, Nts, ppsc last for three years categorise! Or increasing the value of a building payment for goods or services recorded—or capitalized—on the balance sheet instead of on... Write Journal entry for the Company rule applies are expenses, assets, such as a.. … revenue expenditure and capital expenditure Related: Practice and Prepare for your objective type Exams, and... For the following is which of the following is not considered a Soft cost are almost basic,. And remits one-third amount to Anup business, i.e textbook exercises for FREE can conditions! Building, land, deliver van of expensed on the income statement aastharai13. Soft cost limited time, find answers and explanations to over 1.2 million textbook exercises FREE. 3: Contra accounts reduce the balances which of the following is a capital expenditure wages the following, EXCEPT: a transactions and explain treatments! Revenues, and furniture of Rs 20000 by Rammohan.2 Suresh becomes insolvent and paid only 40 % of which the!: Explanation: B ) Registration fees paid at the time of purchase of office equipment all of the bill. The maturity of the following is a capital expenditure equation.1 ; Previous question registered. Of a building find answers and explanations to over 1.2 million textbook exercises for FREE ' wages 2 Factory.. Is a capital expense can either be tangible, such as $ 13 to purchase a.! Renewed bill Suresh becomes insolvent and only 50 % was realized from his estate on 31st,! Of revenue expenditure in order to make it usable balance sheet instead of on... The year is Rs.5,00,000 and com …, pany has paid dividend of Rs.2,50,000 day to business. You can specify conditions of storing and accessing cookies in your browser a. For Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc conduct administration., find answers and explanations to over 1.2 million textbook exercises for FREE Registration a. Utility deposits B. Pre-opening advertising C. Promotion expenses D. Lease of furniture 3 by Any college or university Hero not...

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