Revenue expenditure is intended to benefit: MCQ with Answer and Explanation

Revenue expenditure is intended to benefit:
A. Both current and future periods
B. Current period only
C. None
D. Future periods
Answer: Option B
Solution (By JKSSB Mock Tests)
Revenue expenditure benefits only the current accounting period and is charged to income.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Margin of Safety' is calculated as:
A. Variable cost - Fixed cost
B. Profit / Sales
C. Actual sales - Break-even sales
D. Fixed cost / P/V ratio

Correct Answer: Option C


Explanation:
Margin of safety = Actual sales - Break-even sales.

Question #2
In a trial balance, if the total of the debit side is ₹50,000 and the credit side is ₹45,000, the difference is placed in:
A. Capital Account
B. Trading Account
C. Profit & Loss Account
D. Suspense Account

Correct Answer: Option D


Explanation:
When the trial balance does not tally, the difference is temporarily placed in a Suspense Account to allow the preparation of financial statements.

Question #3
S1: The Trading Account is prepared to ascertain gross profit. S2: The Trading Account includes indirect expenses. Which statement(s) is/are correct?
A. S2 only
B. Both S1 and S2
C. S1 only
D. Neither S1 nor S2

Correct Answer: Option C


Explanation:
The Trading Account is prepared to calculate Gross Profit by matching direct expenses with net sales. Indirect expenses (like office rent, salaries) are recorded in the Profit and Loss Account, not the Trading Account. S1 is correct, S2 is incorrect.