1st Year Principles of Accounting Chapter 13 TestCapital And Revenue

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

1. An expenditure which is completely exhausted with in the current accounting period is known as:

   1. Deferred expenditure

   2. Revenue expenditure

   3. Future expenditure

   4. Non-recurring expenditure

2. The amount invested by the owner in the business to produce revenue is known as:

   1. Income

   2. Asset

   3. Capital

   4. Liability

3. It is the price of goods sold or services provided by a business to its customers:

   1. Asset

   2. Cost

   3. Capital

   4. Revenue

4. Transactions, having short-term effects are known as:

   1. Revenue transactions

   2. Capital transactions

   3. Non-monetary transactions

   4. Paper-transactions

5. Which one of the following is appeared in the balance sheet?

   1. Revenue expenditure

   2. Capital expenditure

   3. Deferred expenditure

   4. Both b,c

6. Capital loss is shown in balance sheet on:

   1. Asset side

   2. Liability side

   3. Both a & b

   4. Credit side

7. Rs.1000 paid as wages for erecting a machine should be debited to:

   1. Cash a/c

   2. Wages a/c

   3. Machinery a/c

   4. None of these

8. Depreciation of fixed assets used in the business is an example of:

   1. Capital expenditure

   2. Revenue expenditure

   3. Deferred expenditure

   4. None of these

9. Expenditure, which helps to maintain the business efficiency is called:

   1. Revenue expenditure

   2. Deferred expenditure

   3. Capital expenditure

   4. Future expenditure

10. A loss is a revenue loss because:

    1. It is related to current assets

    2. It is incurred to decrease the tax liability

    3. It arises due to normal reasons

    4. None of these