Practice Test | Kullabs.com
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  • When the benefit of expenditure is available over a number of years, it is considered as ______. 

    capital expenditure
    revenue expenditure
    revenue gain
    capital gain
  • When the benefit of expenditures is likely to be available foe less than one year, its is treated as ______. 

    capital expense
    revenue loss
    revenue expense
    capital loss
  • Which one is the example of deferred expenditure?

    Expenditure incurred for buying goods for resale or raw materials for manufacturing.
    Expenditure incurred on advertising campaign to introduce a new product in the market.
    Legal charges incurred in connection with acquiring or defending suits for protections fixed assets, rights, etc.
    Expenses incurred in day-to-day conduct of the business such as wages, salaries, rent, postage, stationery, insurance, electricity, etc.
  • Which one is the example of revenue expenditure?

    Expenditure incurred, during the early years, on development of mines and land for plantations till they become operational.
    Cost of shifting the plant and machinery to a new site which may involve dismantling, removing and re-erection of the plant and machinery.
    Expenditure incurred on advertising campaign to introduce a new product in the market.
    Expenses incurred in day-to-day conduct of the business such as wages, salaries, rent, postage, stationery, insurance, electricity, etc.
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