Capital and Revenue receipts MCQ

Which transaction is a capital receipt?

• cash received from sale of inventory

• bank interest received on deposits

• premises rent received from the tenant

• proceeds of sale of equipment

Babar is a wholesaler selling furniture to retailers. Which is a revenue receipt?

• Proceeds of sale of furniture at list price

• Proceeds from sale of old office equipment at book value

• Additional capital introduced to open a new furniture showroom.

• Mid-term loan from the bank for working capital purpose.

For a bookshop owner, which of the following item is a capital receipt?

• receipt of sales commission from the publisher

• cash discount from a supplier of stationery

• proceeds from the disposal of old bookshelf

• cash from sale of notebooks

Which is a capital receipt for the owner of the bicycle shop?

• purchase of bicycle delivery vehicle by cheque

• sale of old bicycle delivery vehicle for cash

• sale of bicycles for cash

• purchase of bicycles by cheque

A trader disposed of old office equipment with a book value $3500 for $3900. How would this transaction be treated by the business in its books?

• Revenue receipt $3900

• Capital receipt $3900

• Capital receipt $400, Revenue receipt $3500

• Capital receipt $3500, Revenue receipt $400

On the last date of his food truck business, A food truck owner sold snacks worth $2 500 and sold his truck for $20,000. How should these receipts be treated in his business books?

• Revenue receipt $22500

• Capital receipt $2500, Revenue receipt $20000

• Capital receipt $20000, Revenue receipt $2500

• Capital receipt $22500

A trader had the following transactions. Credit sales $50 000, cash receipt of $10 000 from the sale of the old motor vehicle at book value. How would these transactions be classified in the trader’s books?

• Capital Receipt $60000

• Revenue Receipt $60000

• Revenue Receipt $50000, Capital Receipt $10000

• Revenue Receipt $10000, Capital Receipt $50000

Lee bought a printer for office use through an e-commerce website. He also paid for the cost of delivering the printer, maintenance for one year and printing paper. What would be included in Lee’s income statement?

• delivery cost, printing paper, maintenance.

• delivery cost, printing paper, maintenance, printer.

• maintenance, printing paper.

• delivery cost, printer.

A business bought a new computer system for office use. Which of the following is treated as revenue expenditure?

• computer speaker

• computer software

• laser printer cartridge refill

• laser printer