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Capital And Revenue Expenditure MCQs

Option A: a general meeting

Option B: first annual general meeting

Option C: statutory meeting

Option D: annual general meeting

Correct Answer: a general meeting


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Option A: With in one month of completion of capital subscription state of the company

Option B: With in one month of the promotion of the company

Option C: With in one month of the commencement of the business of the company

Option D: With in one month of incorporation of the company

Correct Answer: With in one month of incorporation of the company


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Option A: Expenses paid on installation of a plant.

Option B: Cost of dismantling a building in case a new building is to be constructed on the land

Option C: Legal expenses incurred to defend a suit related to title of patent.

Option D: The fees paid to engineer who constructed the plant.

Correct Answer: Legal expenses incurred to defend a suit related to title of patent.


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Option A: two

Option B: fifteen

Option C: five

Option D: ten

Correct Answer: five


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Option A: Capital redemption reserve

Option B: Security premium account

Option C: Debenture redemption reserve

Option D: Capital reserve

Correct Answer: Debenture redemption reserve


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Option A: Undervaluation of closing stock

Option B: Charging capital expenditure to revenue

Option C: Goods sent on consignment being shown as actual sales

Option D: Charging higher rates of depreciation on fixed assets than actually required

Correct Answer: Goods sent on consignment being shown as actual sales


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Option A: effluxion of time

Option B: use

Option C: obsolescence through technology be market changes

Option D: remarket expectation

Correct Answer: remarket expectation


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Option A: Cost of raising a loan

Option B: Cost of accessories of motor vehicles spent at the time of purchase

Option C: Expenses incurred for laying of sewers on land purchased

Option D: Insurance premium paid at the time of registration of the ship

Correct Answer: Cost of accessories of motor vehicles spent at the time of purchase


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