MCQOPTIONS
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This section includes 3 Mcqs, each offering curated multiple-choice questions to sharpen your Business Finance knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
If Rs.15,000 is spent on the repair of a secondhand machinery and Rs. 2,500 on freight in connection with its acquisition, what is the amount of capital expenditure ? |
| A. | Rs. 15,000 |
| B. | Rs.17,500 |
| C. | Rs. 12,500 |
| D. | Rs. 2,500 |
| Answer» C. Rs. 12,500 | |
| 2. |
Mark out which is not a capital expenditure. |
| A. | Cost of issuing shares and debenture |
| B. | Wages paid for construction of a new office |
| C. | Purchase of a new spark plug for Rs.9.75 |
| D. | Repair on a secondhand vehicle newly purchased |
| Answer» D. Repair on a secondhand vehicle newly purchased | |
| 3. |
Heavy initial expenditure on advertising the launch of a new product should be classified as |
| A. | Capital expenditure |
| B. | Revenue expenditure |
| C. | A loss |
| D. | Deferred revenue expenditure |
| Answer» E. | |