Multiple choice

Directions: Choose the correct option for the given question.

Match List-I with List-II and select the correct answer using the code given below the lists. List-I (Nature of Expenditures/Receipts) (a) Capital receipts (b) Capital expenditure (c) Revenue expenditure (d) Revenue receipt List II (Example)

  1. Sale of fixed assets
  2. Improvement of fixed assets
  3. Income received as interest
  4. Interest on loan for business

  1. (a)1 (b)2 (c)4 (d)3

  2. (a)3 (b)4 (c)2 (d)1

  3. (a)1 (b)4 (c)2 (d)3

  4. (a)3 (b)2 (c)4 (d)1
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Capital receipts include sale of fixed assets (1). Capital expenditure includes improvement of fixed assets (2). Revenue expenditure includes interest on loan for business (4). Revenue receipts include income received as interest (3). This classification tests understanding of capital vs. revenue nature in accounting.

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