Subjects. 56% average accuracy. A)Payment of an account payable B)Retirement of bonds payable C)Payment of income taxes D)None of these answer choices are correct. scrap value. A. in order to increase the capacity or efficiency of a company for more than one accounting period. D) It lists all the transactions related to capital stock. 7 months ago. i and ii. The effect of capital expenditure decisions usually extends into the future. 120 seconds . This type of expenditure is made in order to expand the productive or competitive posture of a business. i, ii and iv. i, ii and iv. A capital expenditure refers to the expenditure of funds for an asset that is expected to provide utility to a business for more than one reporting period.Examples of capital expenditures are as follows: Buildings (including subsequent costs that extend the useful life of a building). Which of the following is a capital expenditure? Monthly rent of a delivery truck. Remember Multiple choice questions are having good weightage in the total marks of … C) It is commonly used for current asset expansion. Which of the following is a capital expenditure? A manufacturing company spent the following amounts on the import and installation of a machine: Freight = R s. 5 0, 0 0 0 Insurance premium = R s. 1, 0 5 0 Replacement of a part damaged in transit not covered under insurance policy = R s. 6, 0 0 0 Based on the above data, capital expenditure … Answer Save. Or, as Investopedia so eloquently put it, capital expenditures represent the “funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.” More specifically, CapEx is generally used to … 1) Which of the following is a capital expenditure? Capital expenditure are those which enhance the life of the asset and the benefits by incurring these expenditure arises in the coming years ahead. 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. All grants given to state governments and Union territories are also treated as revenue expenditure, even if some of these grants may be used for the creation of capital assets. Therefore, in the given question purchase of delivery van is a capital … a) Defence. • answer choices . Which of the following ordinarily would be treated as a revenue expenditure rather than a capital expenditure? Capital expenditure is a fancy way of describing the money spent to maintain one’s real estate business. C) It is commonly used for current asset expansion. The following capital expenditures may not appear in the capital budget except: A. 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. Jul 17,2020 - Which of the following is a revenue expenditure ?a)Freight paid on purchase of plant and machineryb)Legal expenses paid to acquire a propertyc)Annual white wash of the factory buildingd)Expenses incurred to reduce working capital requirementCorrect answer is option 'C'. Answer. B. Trending Questions. SURVEY . menu. ii Additional shop counter. Cloudflare Ray ID: 609f818a59a20f26 Cloudflare Ray ID: 609f8185aaf4f0e1 The intent is for these assets to be used for productive purposes for at least one year. Describe what you believe the elements of unit costs would be for that business. 1 Answer. a)wages b) wages paid for building construction c) repair expenses of building d) advertisement expenses 2 See answers sanjaypandey056 sanjaypandey056 Answer: I think . Marketing. iii and iv. Another way to prevent getting this page in the future is to use Privacy Pass. In other words it is an amount spent to acquire or upgrade productive assets such as land, building, vehicles etc. The construction of a new wing on an existing building is descried as an. c. payment of federal income taxes. Accounting Mcqs. 1. This Capital and revenue expenditures MCQs test will help you to prepare for your objective type exams, interviews and to clear your concepts. An addition c. A betterment d. In accounting for plant assets, which of the following outlays made subsequent to acquisition should be fully expensed in the period the expenditure is made? Which of the following is not a capital expenditure? i Fitting partitions. a) Purchase of new car for business manager. 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. Capital Expenditure and Revenue Expenditure DRAFT. D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket. Solution for Which of the following is a capital expenditure? Anonymous. D) It is commonly used to expand the level of operations. Long-term Effects. Economics. iv New tire for a van. asked Dec 22, 2018 in Business by kateranzweiler. c) Pensions. A) It is an outlay made to replace current assets. It is commonly used for current asset expansion. Capital expenditure is money used to buy, improve, or extend the life of fixed assets in an organization, and that have a useful life one year or more. Can you explain this answer? Which of the following is not a capital expenditure A. It is an outlay expected to produce benefits within one year. a. Mcq Added by: admin. C. Sales tax paid in conjunction with the purchase of office equipment. 0 0. a) Interest receipts on loans given by the government to other parties. Examples of capital expenditures are as follows: Buildings (including subsequent costs that extend the useful life of a building) Loan disbursals. Payment of an account payable b. A. b) Paid for the certificate of entitlement of the new car. A) It is an outlay made to replace current assets. Capital expenditures, or capex, is spending on fixed assets which are purchased for long-term use. C. It is an outlay made to replace current assets. Tags: Question 10 . Recently Asked Questions. Expert Answer 100% (2 ratings) Previous question Next question Get more help from Chegg. Monthly rent of a delivery truck. Which of the following is a true of a capital expenditure? Greater risk is associated with improving existing products than creating new products. Repairs that maintain an asset in operating condition b. a) Purchase of new car for business manager. Which of the following are capital expenditures to Puan Ros? Which of the following below is an example of a capital expenditure? 2. • Capital expenditure or capital expense (capex or CAPEX) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. Management. • accounting mcqs for accountant. It is an outlay expected to produce benefits within one year. Solution for which of the following is a capital expenditure : a- repairs to motor vehicles b- goods were taken by the owner for own use c- the cost of raw… Since you list nothing, I'm going to take a stab in the dark and say "depreciation." Capital expenditures usually take two forms: maintenance expenditures and expansion expenditures.Due to their substantial initial costs, irreversibility, and long-term effects, capital expenditure decisions are very critical to an organization. Accounting. Which of the following is not a capital expenditure? A capital expenditure is the use of funds or assumption of a liability in order to obtain or upgrade physical assets. Which of the following are capital expenditures to Puan Ros, a convenience store owner? Which of the following is true of a capital expenditure? iii Renewing signboards. Repair of plant and machinery B. Which of the following is true of a capital expenditure? B. C) It records all short-term expenses for a period. Related questions. a) Payment of an account payable b) Retirement of bonds payable c) Payment of federal income taxes d) none of these 2) which of the following is not a capital expenditure? Capital expenditure projects will … by nurfitridewi95_51731. Which of the following is a capital expenditure? Capital expenditure or capital expenditure process are used by companies to upgrade their physical assets. Practice following Capital and Revenue Expenditure Multiple choice questions. The capital expenditures in which the benefits are most difficult to quantify are: A. replacement expenditures C. improvement expenditures B. expansion expenditures D. allowance expenditures Carter & Usry Not a Capital Expenditure 6. Repair and maintenance on buildings b. B. The loans given by the Government to the states, PSUs and other governments come under Capital Expenditures because such loans are assets of the government. Assessing risk is a trivial part of research and development. Such assets include things like property, equipment, and infrastructure. Edit. A capital expenditure (“CapEx” for short) is the payment with either cash or credit to purchase long term physical or fixed assets used in a business’s operations. D. It is an outlay expanded to produce benefits within one year. Performance & security by Cloudflare, Please complete the security check to access. A. answer choices . Played 27 times. 7 months ago. ii, iii and iv. Retirement of bonds payable c. Payment of federal income taxes d. None of these 29. Get Answer. Use, as an example, a manufacturing company that operates where you live. C. Sales tax paid in conjunction with the purchase of office equipment. Aastharai13 Aastharai13 Answer: Explanation: B. Normal repairs and maintenance. d) Bought air freshener for the new car. Capital expenditure is recorded as a Non-Current Asset; revenue expenditure is recorded as an expense or current asset 6 Identify if the following is capital or revenue expenditure and state why. Answer : d. Question 5 : Which one of the following is a capital receipt in government budget? Normal repairs and maintenance. D) It is commonly used to expand the level of operations. TCO 4 Which of the following is not a capital expenditure Student Answer from BUSN 278 at DeVry University, Kansas City 60. These expenditures are 'non-recurring' by nature. Risk increases as the time between the R&D activity and the cash flows from the project increases. A capital expenditure (“CapEx” for short) is the payment with either cash or credit to purchase long term physical or fixed assets used in a business’s operations. Following are the key examples of capital expenditures. Still have questions? You may click the link to find Multiple choice questions (Q.No-1 to 10) on Capital and Revenue Receipts and Payments.. Which of the following is NOT true about capital expenditures? Having said that, they are nothing, if not necessary. Get your answers by asking now. • If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. A capital expenditure (CAPEX) is the money companies use to purchase, upgrade, or extend the life of an asset. It will increase the capital of the business It will decrease the capital of the… B. The expenditure Expenditure An expenditure represents a payment with either cash or … Your IP: 104.37.172.56 Which of the following is capital expenditure? Which of the following costs is normally a capital expenditure? It is true what they say: you need to spend money to make money, and capital expenditures are no exception. iii Renewing signboards. A. 6. It is commonly used to expand the elevel of operations. b. retirement of bonds payable. Save. Q. Salary paid to workers C. Cost of stand by equipment D. Annual whitewash of the office building . Capital Expenditure Definition: Capital Expenditure or CapEx refers to the financial outlay made by the firm for an asset which is expected to stay in the business for a long time, so as to use the same for more than one financial year, which not only generates enduring benefits for the company but ensures the generation of revenue over the years. The following capital expenditures may not appear in the capital budget except: A. An addition c. A betterment d. A replacement P 55. c) Bought car cushion for the new car. Repair expenses Cost of extension to building Depreciation of machinery Electricity expenses iii and iv. Which of the following is capital expenditure? Capital expenditure is the money spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, land etc. Accounting Mcqs for Preparation of various Test announced by Fpsc, kppsc, Nts, ppsc. a. finance; 0 Answers. A. ii Additional shop counter. Question 5 4 pts (co 4) Which of the following is not a capital expenditure? The capital expenditures in which the benefits are most difficult to quantify are: A. replacement expenditures C. improvement expenditures B. expansion expenditures D. allowance expenditures Carter & Usry Not a Capital Expenditure 6. addition. Which of the following is a capital expenditure? Which of the following is a capital expenditure? A. The range of current production or manufacturing activities is mainly a result of past capital expenditures. (Points : 4) The amount of time between the R&D activity and the cash flows from the project does not affect risk. answer choices . Capital expenditures are major investments, meaning they require large sums of funds. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. Capital expenditure (CapEx) is a payment for goods or services recorded—or capitalized—on the balance sheet instead of expensed on the income statement. It is commonly used for current asset expansion. 0 votes. Capital expenditures are the funds used to acquire or upgrade a company's fixed assets, such as expenditures towards property, plant, or equipment (PP&E). Edit. | EduRev CA Foundation Question is disucussed on EduRev Study Group by 151 … R&D activities is correct? Ask Question + 100. Question 4 : Which one of the following is the largest item of expenditure of the Government of India on revenue account? Capital expenditure (CapEx) is a payment for goods or services recorded—or capitalized—on the balance sheet instead of expensed on the income statement. 100% correct and accurate. See below for the correct answer. Leadership. Each question has 4 answers from which you need to choose the correct one. Revenue Expenditure is that part of government expenditure that does not result in the creation of assets. What is a Capital Expenditure? Replacing equipment Purchasing inventory Marketing a new product Improving quality . Replacement of an old motor with a new one in a piece of equipment C. THe cost of installing a piece of equipment D. A tune-up of a company vehicle E. The addition of a building wing Monthly rent of a delivery truck. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. Normal repairs and maintenance. B) It indicates all the estimated cash receipts and cash payments for a period of time. i and ii. Examples of capital expenditures are funds paid out … Which of the following is a capital expenditure? d. money spent to acquire physical assets. D. Small expenditures to acquire long-lived assets, such as $13 to purchase a wastebasket. Your IP: 67.225.241.229 Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. A capital expenditure refers to the expenditure of funds for an asset that is expected to provide utility to a business for more than one reporting period. Relevance. Which of the following is true of a capital expenditure? Complete overhaul of air-conditioning system B. iv New tyre for a van. b) Subsidies. Capital expenditure is recorded as a Non-Current Asset; revenue expenditure is recorded as an expense or current asset 6 Identify if the following is capital or revenue expenditure and state why. Get more help from Chegg. Which of the following is NOT true of capital expenditures? cost to acquire a printing press. Q. B. Q 66. You may need to download version 2.0 now from the Chrome Web Store. a. i Fitting partitions. They are important because of the following reasons: 1. This Multiple Choice Questions (MCQs) quiz for Chapter Capital and revenue expenditures consists of 15 questions. nurfitridewi95_51731. Spending Rs.8.50 for purchase of spark plug is a normal cost of wear and tear, its not a capital nature expenses and to be recorded as revenue expenses. which of the following is not a capital expenditure? asked Dec 22, 2018 in Business by kateranzweiler. Capital Expenditure is that expenditure which results in increasing of government asset (giving out loans) or reduce in some liability (paying back old loans). C) It is commonly used for current asset expansion. Capital Expenditure may include the following: Purchase costs (less any discount received) Delivery costs; Legal charges; Installation costs; Up gradation costs; Replacement costs Repair expenses Cost of extension to building Depreciation of machinery Electricity expenses. 1. Products. Performance & security by Cloudflare, Please complete the security check to access. Please enable Cookies and reload the page. This can be viewed as an investment in a business that isn't immediately expensed but … For; 30 seconds . Finance. C. Sales tax paid in conjunction with the purchase of office equipment. Join. 6. ii, iii and iv. Capital expenditures represent some of the largest expenses associated with an investment property. Companies should weigh all possible options before committing available resources to projects that take significant amounts of funds and extended time. A) It summarizes plans for acquiring fixed assets. Which of the following is true of a capital expenditure? An example of a growth expense is an addition to a building or purchase of another business to add to the current business. Group of answer choices replacing an engine in a company car cleaning the carpet in the front room tune-up for a company truck replacing all burned-out light bulbs in the factory B) It is an outlay expected to produce benefits within one year. Business. A) It is an outlay made to replace current assets. b) Paid for the certificate of entitlement of the new car. B) It is an outlay expected to produce benefits within one year. Business. d) Interest payments . Computer equipment. Trending Questions. Tags: Question 10 . The expenditure Expenditure An expenditure represents a payment with either cash or credit to purchase goods or services. B) It is an outlay expected to produce benefits within one year. Which of the following below is an example of a capital expenditure? a. payment of an accounts payable. There’s no way around them, so you may as well budget for them. It is commonly used for current asset expansion. Explore answers and all related questions . 27 times. Solution for Which one of the following is NOT true of capital expenditure? Which of the following is true of a capital expenditures budget? Which of the following is a capital expenditure? 7 months ago. posted by John Spacey, October 17, 2017 updated on June 23, 2020. salvage value is to the same as. a. cleaning the carpet in the front room b. replacing all burned-out light bulbs in the factory c. replacing an engine in a company car d. tune-up for a company truck