Q. It is considered a capital expenditure when the asset is newly purchased or when money is used towards extending the useful life of an existing asset, such as repairing the roof. Recently Asked Questions Note: Billings per year are stated as percentages of the contract price. They are important because of the following reasons: 1. The following are capital expenditures EXCEPT the ... answer choices . Purchase of a Goodwill is _____. answer choices . Land Land is a special type of capital expenditure as its value doesn't typically deprecate because it generally doesn't go down in value. Solution for 23Which one of the following is capital expenditure? Sales tax paid in conjunction with the purchase of office equipment. They can be categorized into the following: Gross fixed capital. Long-term Effects. Related Questions to study. Stationery, supplies, merchandise. Replacement of an old motor with a new one in a piece of equipment C. A tune-up of a company vehicle D. A complete overhaul of an air-conditioning system E. The cost of installing a piece of equipment . 52. Consumer expenditures make up 71% of total expenditures while wages account for 59% of total income. 2. Expenditure incurred to acquire fixed assets for the company. Pages 34. a)wages paid for repair of building b)wages paid for white… The greater capital expenditure for a firm, the lesscash flow it can use. The addition of a building wing B. Options. Which of the following is a capital expenditure: a) Wages paid for repair of building b) Wages paid for white washing of building c) Wages paid for reconstruction of building d) Wages paid for cleaning of building 2 See answers RehbarKhan RehbarKhan Answer: Here is your answer. Practice important Questions. Capital Expenditure. C. Wages paid for installation of machinery. Assume a governmental entity enter into a capital lease for the purchase of seven new public safety vehicles. If a Keynesian expenditure-output model shows that aggregate demand for both goods and labor has shifted to the left to D1, while wages remained at w0 and prices remained at P0, what will be the result? B) stationery. C) repairs of motor vehicle. Salaries and wages expenditures c. Debt service expenditures d. Prepayments for insurance premiums. D) purchase of furniture. The following are illustrative examples of capital expenditures. An expenditure which results in the acquisition of permanent asset which is intended lo be permanently used in the business for the purpose of earning revenue, is known as capital expenditure. 2. Capital Expenses or Expenditures are payments by a business for fixed assets, like buildings and equipment. Assembly b. School Universiti Teknologi Mara; Course Title ACCOUNTING ACC406; Uploaded By hyokaz9. Which of these is NOT a list of revenue expenditure? Question Which of the following is a capital expenditure? Payment for Machinery. Oil to lubricate machines. SURVEY . Decoration of office space. Which of the following is a Revenue Expenditure? (iii) ₹ 5,000 paid for the erection of a new machine. Stationery, supplies, merchandise. This Capital and revenue expenditures MCQs test will help you to prepare for your objective type exams, interviews and to clear your concepts. Wages paid for white washing of building . Which of the following expenditures is of capital nature? 1,200 is paid as dealer's commission. Which of the following is a revenue expenditure. The contract is non-cancellable. Which of the following are of capital nature? d. Depreciation. Identify between capital and revenue expenditure the … C. Wages paid for installation of machinery. b. goods taken by owner for own use. Which of the following is not a common type of governmental fund expenditure? Fire insurance on a building . A. Which of these is NOT a list of revenue expenditure? excess supply. Giving reasons categorise the following into revenue expenditure and capital expenditure. B. B. The effect of capital expenditure decisions usually extends into the future. d. Depreciation. (i) and (ii) are revenue expenditure because they create neither assets nor reduce liability but (iii) and (iv) are capital expenditure since (iii) reduces liability and (iv) creates an asset. This preview shows page 15 - 28 out of 34 pages. Prev Question Next Question. Analyze the current market position of WAPDA by using Bottom Up Approach and Top Down Approach. Salaries and wage expenditures c. Debt Service expenditures d. Prepayments for insurance premiums e. Items a and d only. (ii) Purchase of Metro coaches from Japan. Purchase of Furniture Repairs to Machinery Extension of Office Installation of Equipment. Which of the following is a capital expenditure? Renovation of office space. Cost of repair . 500 is incurred to get the car registered in owner's name and Rs. b. Uploaded by: darrenkanjithara. The retailer, in turn, brings in $105,000 from selling the honey directly to final customers. SURVEY . a. Answered By . Wages for construction of building. D. Both (a) and (b) Answer. 5 years. 3. Correct answer to the question: Of the following is a capital expenditure: a) wages paid for repair of building b) wages paid for of building c) wages paid for reconstruction of building d) wages paid for cleaning of building - eanswers.in Wages paid for repair of building. Wages paid to factory workers. The range of current production or manufacturing activities is mainly a result of past capital expenditures. Purchase of a goods. Give reasons. 10,000, the amount of Rs. (iii) Repayment of Loan taken from World Bank. Each question has 4 answers from which you need to choose the correct one. Capital expenditure may include the following expenditures:-Expenditure incurred on the acquisition of fixed assets, ... All expenses incurred in the ordinary conduct of business, such as rent, salaries, wages, manufacturing expenses, carriage, commission, legal charges, insurance and advertisement, free samples, salaries, postage expenses etc. Decoration of office space. (iv) Grants given by central government to state Government. Expenditure incurred in the ordinary conduct and administration of business, i.e. Salaries and wage expenditures . Wages and Salaries Machine Maintenance Purchasing raw material Factory Equipment. Repair expenses Cost of extension to building Depreciation of machinery Electricity expenses However, amount of wages and salaries paid for the erection … Capital expenditure or capital expense (capex or CAPEX) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. When an economy is experiencing higher real interest rates, business firms will most likely be discouraged from investing in: tangible and/or intangible capital. C. Research and development costs. Get Answer. Select one: a. repairs to motor vehicles. a. Following are the examples of revenue expenditure. (ii) A sum of ₹ 10,000 was spent on painting the new factory. 30 seconds . Capital expenditures can be contrasted with operational expenditures, or opex, that are immediately expensed. Answer is d. Related: Practice and prepare for your Upcoming exams ; Previous question capital?... Answer choices, read and find out how to use the cash.... Insurance premiums e. Items a and d only the lesscash flow it can use in the ordinary conduct and of. Wage expenditures c. Debt service expenditures d. Prepayments for insurance premiums of these is not a capital decisions. Turn, brings in $ 105,000 from selling the honey directly to final.! 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