Capital and Revenue Receipts Multiple Choice Questions

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Practice following Capital and Revenue Receipts Multiple choice questions.

You may click the link to find Multiple choice questions (Q.No-11 to 20) on Capital and Revenue Expenditure.

Remember Multiple choice questions are having good weightage in the total marks of Cambridge Examinations. So don't neglect practicing multiple choice questions. 


Capital and Revenue Receipts Multiple Choice Questions (Q.No:1 to 8)

1.   Which transaction is a capital receipt?

A.

cash received from sale of inventory

B.

bank interest received on deposits

C.

premises rent received from the tenant

D.

proceeds of sale of equipment


2. Babar is a wholesaler selling furniture to retailers. Which is a revenue receipt?

A.

Proceeds of sale of furniture at list price

B.

Proceeds from sale of old office equipment at book value

C.

Additional capital introduced to open a new furniture showroom.

D.

Mid-term loan from the bank for working capital purpose.


3. For a bookshop owner, which of the following item is a capital receipt?

A.

receipt of sales commission from the publisher

B.

cash discount from a supplier of stationery

C.

proceeds from the disposal of old bookshelf

D.

cash from sale of notebooks


4. Which is a capital receipt for the owner of the bicycle shop?

A.

purchase of bicycle delivery vehicle by cheque

B.

sale of old bicycle delivery vehicle for cash

C.

sale of bicycles for cash

D.

purchase of bicycles by cheque


5. A trader disposed of old office equipment with a book value $3500 for $3900. How would this transaction be treated by the business in its books? 

Capital Receipt $ Revenue Receipt $
A. - 3900
B. 3900 -
C. 400 3500
D. 3500 400

6. On the last date of his food truck business, A food truck owner sold snacks worth $2 500 and sold his truck for $20,000. How should these receipts be treated in his business books? 

Capital Receipt $ Revenue Receipt $
A. - 22 500
B. 2 500 20 000
C. 20 000 2 500
D. 22 500 -

7.  A trader had the following transactions. Credit sales $50 000, cash receipt of $10 000 from the sale of the old motor vehicle at book value. How would these transactions be classified in the trader’s books?

Revenue Receipt $ Capital Receipt $
A. - 60 000
B. 60 000 -
C. 50 000 10 000
D. 10 000 50 000

8.  Wong-Chu received the following cheques. 

$700 from the sale of inventory, $1000 from the sale of old machinery (at book value,) $200 for commission on sales.

How did Wong-Chu classify these receipts?

S.No Sale of inventory Sale of machinery Sales commission
A. Capital receipt Revenue receipt Capital receipt
B. Revenue receipt Capital receipt Revenue receipt
C. Revenue receipt Revenue receipt Capital receipt
D. Capital receipt Capital receipt Revenue receipt


Capital and Revenue Expenditure-Multiple Choice Questions (Q.No: 9 to 10)

9. Lee bought a printer for office use through an e-commerce website. He also paid for the cost of delivering the printer, maintenance for one year and printing paper. What would be included in Lee’s income statement?

A.

delivery cost, printing paper, maintenance.

B.

delivery cost, printing paper, maintenance, printer.

C.

maintenance, printing paper.

D.

delivery cost, printer.


10. A business bought a new computer system for office use. Which of the following is treated as revenue expenditure?

A.

computer speaker

B.

computer software 

C.

laser printer cartridge refill

D.

laser printer


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