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Capital and Revenue Receipts Multiple Choice Questions

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.