Capital & Revenue Expenditure

Acquisition of fixed asset is an example of

• Capital Expenditure

• Revenue Expenditure

• Deferred Expenditure

• None of the Above

Maintenance of fixed asset is an example of

• Capital Expenditure

• Revenue Expenditure

• Deferred Revenue Expenditure

• None of the Above

Construction of Building is an example of

• Capital Expenditure

• Revenue Expenditure

• Deferred Revenue Expenditure

• None of the Above

Expenditure of advertisement for furtherance of market for product is an example of

• Capital Expenditure

• Revenue Expenditure

• Deferred Revenue Expenditure

• None Of the Above

An expenditure that is charged to Profit & Loss account over a period of 3-5 years is an example of

• Capital Expenditure

• Revenue Expenditure

• Deferred Revenue Expenditure

• None Of the Above

A benefit of an expenditure is available for one year only. It is an example of

• Capital Expenditure

• Revenue Expenditure

• Deferred Revenue Expenditure

• None of the above

The expenditure which helps increase the earning capacity of the firm is an example of

• Capital Expenditure

• Revenue Expenditure

• Deferred Revenue Expenditure

• None of the Above

An expenditure is an capital expenditure because

• the amount is paid is lump-sum

• the amount is large

• it is intended to benefit in the current period

• it is intended to benefit in future period

An expenditure is a revenue expenditure because

• it is not intended to benefit the current period

• the amount involved is small

• it is deducted from the gross sales proceeds

• none of the above

A receipt is the capital receipt because

• the amount is heavy

• it is not credited to capital account

• it relates to availability for long period

• none of the above