MCQs of Capital and Revenue Class 11 with Answers

MCQs of Capital and Revenue Class 11 with Answers for CBSE, ISC and State Boards

An expenditure is a revenue expenditure because:

(a) It is intended to benefit the future period
(b) It is intended to benefit the current period
(c) The amount involved is small
(d) The amount involved is large

Ans – (b)

Capital expenditure is incurred:

(a) to improve the efficiency of the asset
(b) to maintain the efficiency of the asset
(c) to restore the efficiency of the asset

Ans – (a)

Wages paid for erection of machinery are debited to

(a) Wages Account
(b) Machinery Account
(c) Trading Account
(d) Profit & Loss Account

Ans – (b)

Premium received on issue of shares is a

(a) Revenue Receipt
(b) Capital Receipt
(c) None of the above

Ans – (b)

which of the following is not a Capital Expenditure ?

(a) Spent ₹ 5,000 on over-hauling of a second hand machinery purchased
(b) Brokerage of ₹ 20,000 paid for purchase of a land
(c) Spent ₹ 1,20,000 on annual white-washing of the building.
(d) Spent ₹ 12,000 on white-washing of a new building.

Ans – (c)