LikhoPadho.com | Capital and Revenue Expenditure Class 10 MCQ

1. Brokerage paid on the purchase of a fixed asset is treated as __________.

Revenue expenditure Revenue receipts Capital expenditure Capital receipts

2. Which is NOT the example of capital expenditure ?

Cost of intangible assets Purchase of furniture Loss from sale of fixed assets Cost of improvements to existing fixed assets.

3. Revenue expenditure is incurred:

to improve the efficiency of an asset to maintain the efficiency of an asset to buy a fixed asset. none of the above

4. Cost of registration of a new company.

Capital expenditure Revenue expenditure Deferred Revenue Expenditure Capital Receipts

5. Which is shown in the Trading Account or Profit and Loss Account?

Capital Expenditure Revenue Expenditure None of them Both of them

6. Amount received from the sale of investments and fixed assets is an example of __________

Capital Expenditure Revenue Receipts Capital Receipts Revenue Expenditure

7. Fixed assets lose part of their value every year due to wear and tear with passage of time, such reduction is called __________ on fixed assets.

depreciation deduction production none of these

8. Rent received from tenants is an example of _____________.

Capital Expenditure Revenue Receipts Capital Receipts Revenue Expenditure

9. Cost of converting a petrol engine into a diesel engine.

Capital Expenditure Revenue Expenditure Deferred Revenue Expenditure None of the above

10. Match the Column I and Column II

Column I	Column II
(a) Insurance premium	(i) Captial Expenditure
(b) Cartage paid on purchase of furniture	(ii) Revenue receipt
(c) Profit on Sale of Assets	(iii) Revenue Expenditure
(d) Dividend received	(iv) Capital receipt

(a) i (b) ii (c) iv (d) iii (a) iii (b) i (c) iv (d) ii (a) ii (b) i (c) iv (d) iii (a) iii (b) iv (c) ii (d) i

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