11th Principles of Accounting MCQS Chapter 13

Preliminary expenses paid in the formation of a company is a

Capital expenditure

Revenue expenditure

Deferred expenditure

Capital loss

An expenditure, which is non-recurring and irregular is called

Revenue expenditure

Capital expenditure

Short-term expenditure

Current expenditure

An expenditure, which is completely exhausted with in the current accounting period is known as

Future expenditure

Deferred expenditure

Non-recurring expenditure

Revenue expenditure

All revenue expenditure are taken to

Profit or loss a/c

Balance sheet

Trading & profit or Loss a/c

Trading a/c

Depreciation of fixed assets used in the business is an example of

Revenue expenditure

capital expenditure

None of these

Deferred expenditure

An expenditure, incurred to improve the position of the business is known as

Recurring expenditure

Revenue expenditure

Capital expenditure

Deferred expenditure

An expenditure, which increases the utility or productive capacity of an asset is treated as

Capital expenditure

Deferred expenditure

Revenue expenditure

None of these

Bad debts are

Deferred expenditure

Capital expenditure

Revenue expenditure

None of these

Which one of the following is appeared in the balance sheet

Revenue expenditure

Deferred expenditure

Both b & c

Capital expenditure

Capitalized expenditure are shown in

Trading a/c

Income statement

Balance sheet

Profit or loss a/c