Expenses of the following nature are treated as a Revenue expenses except__________?

Related Mcqs:

1. Which of the following is a revenue expenses?

   A. Raw material consumed
   B. Plant purchased
   C. Long term loan raised from bank
   D. Share Capital

2. Which of the following should not be treated as revenue expenditure?

   A. Interest on loans and debentures
   B. Annual fire insurance premiums on Plant and Equipment
   C. Sales tax paid in connection with the purchase of office equipment
   D. Small expenditures on long- lived assets, such as ` 20 for a paper weight.

3. Payment of expenses will ______ the assets

   A. Increase
   B. Reduce
   C. apportion
   D. Overstate

4. Capital expenses are shown in___________?

   A. Balance Sheet
   B. Profit and Loss A/c
   C. Trading A/c
   D. None of these

5. The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is_________?

   A. Depreciation
   B. Physical deterioration of the asset
   C. Decrease in market value of the asset
   D. Valuation of an asset at a point of time

6. The adjustment to be made for prepaid expenses is____________?

   A. Add prepaid expenses to respective expenses and show it as an asset
   B. Deduct prepaid expenses from respective expenses and show it as an asset
   C. Add prepaid expenses to respective expenses and show it as a liability
   D. Deduct prepaid expenses from respective expenses and show it as a liability

7. Prepaid expenses are valued on the Balance Sheet at

   A. Replacement cost
   B. Current cost
   C. Cost to acquire less accumulated amortization
   D. Cost less expired portion

8. Payment of rent expenses is recorded on which side of cash book?

   A. Receipts
   B. Payments
   C. Income
   D. Expense

9. The revenues and expenses of a company are displayed in which statement?

   A. Balance Sheet
   B. Cash Flow Statement
   C. Income Statement
   D. None of the above

   Submitted by: Aqeel Ahmed

10. Which of these types of expenditure would not be treated as a Capital Expenditure?

    A. Acquisition of an Asset
    B. Extension of an Asset
    C. Improvement of the existing Asset
    D. Maintenance of the Asset