Capital and revenue

Capital and revenue expenditures multiple choice questions (MCQs)

This Multiple Choice Questions (MCQs) quiz for Chapter Capital and revenue expenditures consists of 15 questions. Each question has 4 answers from which you need to choose the correct one. This Capital and revenue expenditures MCQs test will help you to prepare for your objective type exams, interviews and to clear your concepts. If you …

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Rules for determining revenue expenditures

Revenue expenditures There is a difference between “Income” & “Revenue”. Income of any form is called Revenue, whereas, Revenue represents any income or expenditure. Revenue expenditures refer to the amount spent on routine expenses of the business e.g. salaries paid to employees, Rent of office paid etc. As revenue expenditure provides benefits for the current …

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Capital and revenue expenditures

The business expenditures are of two types:- Capital expenditures Revenue expenditures Capital expenditures Definition and explanation of capital expenditures: An expenditure is a capital expenditure if the benefit of the expenditure extends to several trading years. Capital expenditure may include the following expenditures:- Expenditure incurred on the acquisition of fixed assets, (tangible or intangible) which …

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Items of revenue expenditures becoming capital expenditures

The following are the important examples of which are usually revenue, but under certain circumstances they become capital expenditure:- Legal charges Generally legal charges are revenue expenses, but legal charges paid in connection with the purchase of property or other fixed asset such as land, building, furniture, machinery and patents etc., are capital expenditure, as …

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