Revenue Items vs Capital Items

Q.

Explain the following terms : Entrance fees, Legacy, Specific donations, Subscription.

Q.

Differentiate between investment and foreign investment

Q.

Subscription received by a school for organising annual function is treated as :

1. Capital Receipt

2. Revenue Receipt

3. Earned Income

4. Asset

Q. The amount received from the sale of grass by a club should be treated as .

1. revenue receipt
2. capital receipt
3. revenue expenditure
4. capital expenditure

Q.

What does postage refer to in the petty cash book?

Q.

What is the difference between provision for bad debts and reserve for bad debts?

Q.

Subscription received by an organisation is a ____________.

1. Capital receipts

2. Revenue receipts

3. Both

4. None of these

Q.

Show the accounting treatment of the following items by a Not-for-Profit organisation.

(i) Annual Subscription

(ii) Specific Donation

(iii) Sale of Fixed Assets

(iv) Sale of Old Periodicals

(v) Sale of Sports Materials

(vi) Life Membership Fee

Q.

________________ either increases assets or reduces liability.

1. Capital Expenditure

2. Revenue Receipt

3. Revenue Expenditure

4. Capital Receipt

Q.

Rent paid to landlord should be credited to _________ account.

Q.

Following is the Recipts and Payments Account of Women's Welfare Club for the year ended December 31, 2007

Prepare Income and Expenditure Account for the year ended December 31, 2013 and Balance Sheet as on that date.

Q.

What are the characteristics of income and expenditure accounts?

Q. Any transaction which either increases liability or decreases assets is a .

1. revenue receipt
2. capital receipt
3. revenue expenditure
4. capital expenditure

Q.

State clearly what would constitute the operating activities for each of the follow in the following of enterprises:

(i) Hotel

(ii) Film production house

(iii) Financial enterprise

(iv) Media enterprise

(v) Steel manufacturing unit

(vi) Software development business unit.

Q.

what is the basic difference between income and revenue?

Q.

What is the purpose of revenue recognition?

Q. Which of the following is deferred revenue expenditure?

1. Rs. 10000 spent on dismantling of old Plant and Machinery.
2. High legal expenses incurred by the company to defend legal suit of a 10, 00, 000.
3. All the three.
4. Sales promotion expenses amounting to Rs.50000.

Q.

What is an income-expenditure statement?

Q. Subscription received by an organisation is a .

1. revenue receipt
2. capital receipt
3. revenue expenditure
4. capital expenditure

Q. If an owner introduces money in the business, it assets and capital.

1. increases
2. reduces
3. multiplies
4. divides

Q. Renewal fee for patents or Patent Rights is a _______________.

1. Capital expenditure
2. Revenue expenditure
3. Deferred revenue expenditure
4. Development expenditure

Q. Outstanding subscription for a non-profit organization is considered as a/an ____________.

1. Expenses
2. Liability
3. Equity
4. Asset

Q. Goods taken by proprietor for domestic use should be credited to ___________.

1. sales account
2. proprietor's personal expenses
3. purchases account
4. expenses account

Q.

Income and Expenditure Account records ___

1. Capital items

2. Revenue items

3. Both revenue and capital items

4. None of these

Q.

Does capital expenditure affect profit?

1. None of these

2. Yes, it will increase the profit

3. Yes, it will decrease the profit

4. No, it will have no effect.

Q.

Any transaction which either increases liability or decreases assets is a ____________.

1. None of these

2. Revenue Receipt

3. Capital Receipt

4. Either Revenue or Capital Receipt

Q. 'Subscriptions collected in advance by a publisher' should be classified as _________________.

1. Accrued asset
2. Accrues liability
3. Prepaid expense
4. Unearned revenue

Q. Select the most appropriate answers from the alternatives given below and rewrite the sentences.

Non-Cash items are not recorded in_____________ .
a) Income and Expenditure
b) Receipt and Payments Accounts
c) Balance Sheet
d) Profit and Loss Account

Q.

The amount received from the sale of grass by a club should be treated as __________.

1. Capital Receipt

2. Asset

3. Revenue Receipt

4. Earned Income

Q.

If an owner introduces capital, it __________ assets and ___________ capital.

1. decreases, increases

2. increases, decreases

3. increases, increases

4. decreases, decreases