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प्रश्न
An expenditure is a capital expenditure when ______.
विकल्प
It relates to sale fixed assets.
It arises due to abnormal reasons.
It involves withdrawal of capital.
It relates to maintain the efficiency of an asset.
उत्तर
An expenditure is a capital expenditure when it involves withdrawal of capital.
Explanation:
Capital expenditure is incurred either to purchase or build a non-current asset, or to improve or upgrade an existing non-current asset.
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संबंधित प्रश्न
Carriage, freight, octroi duty, customs duty, clearing charges, dock dues, and excise duty paid on machinery are examples of ______.
Match the Column I and Column II:
| Column - I | Column - II | ||
| (a) | Capital Expenditure | i | Repairs costing ₹ 600 carried out on a boiler. |
| (b) | Revenue Expenditure | ii | Advertising expenses ₹ 25,000 incurred for launching a new product in the market. |
| (c) | Deferred Revenue Expenditure | iii | Interest received. |
| (d) | Revenue Receipts | iv | A sum of ₹ 15,000 spent on the overhauling of a second-hand delivery van. |
Match the Column I and Column II:
| Column - I | Column - II | ||
| (a) | Preliminary expenses of ₹ 5,000. | i | Capital Expenditure |
| (b) | Purchase of old machine for ₹ 9,500. | ii | Revenue Expenditure |
| (c) | Wage paid ₹ 1,500 for carriage for goods. | iii | Deferred Revenue Expenditure |
| (d) | Loan received from Banks ₹ 10,00,000. | iv | Capital Receipts |
Give four examples of capital expenditure.
______ expenditure is an expenditure benefiting the future period.
Expenditure incurred to ______ the asset is capital expenditure.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
₹ 15,000 paid for obtaining a mortgage.
Classify the following into Capital, Revenue and Deferred Revenue Expenditures, reason for your answer.
Wage paid for extension of office premises.
In the following case indicate the amount to be debited as Capital Expenditure and Revenue Expenditure:
A total expenditure of ₹ 50,000 was incurred on factory buildings out of this 20% related to repairs and 80% related to extensions.
Which of the following are Capital Expenditure, Revenue Expenditure and Deferred Revenue Expenditure?
Cost of painting the name of the company and other advertisement message on a newly purchased delivery van.
