Accounting Mcqs

Q.  Which of the following items should not be capitalized relating to fixed assets?

a. Interest payable on loans or deferred credits taken for the acquisition or construction of fixed assets before they are ready for use
b. Stand by equipment and servicing equipment
c. Expenditure incurred on test runs and experimental production
d. Administration and general expenses


ANSWER: See Answer
 
Only those expenses which relate to and specifically attributable to the asset are
capitalized. Administration and general expenses cannot be specifically attributable to the asset
and hence cannot be capitalized.
TasDia Network - Mcqs | Signature | Lyrics
MCQs:  The periodic total of purchase day book is posted to____________?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Capital expenses are shown in___________?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Revenue receipts are shown in___________?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Revenue is generally recognized as being earned at that point of time when?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Which of the following is a revenue expenses?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Which of the following is a capital expenditure?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Which of these types of expenditure would not be treated as a Capital Expenditure?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Expenses of the following nature are treated as a Revenue expenses except__________?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Cash received from debtors would be deemed as___________of funds.
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Generally the term fund is used to mean the difference between?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Which of these documents is not required for Bank Reconciliation?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Which of these items are taken into consideration for preparation of adjusted Cash Book
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Credit balance as per Cash Book mean____________?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Debit side of Bank Pass book corresponds to___________?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Difference in Bank Balance as per Pass Book and Cash Book may arise on account of_____________?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  The Bank Reconciliation Statement is prepared?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Bank reconciliation is a statement prepared to reconcile__________?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Bank reconciliation statement is a part of_________?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Benefits of preparing Bank Reconciliation Statement includes___________?
Category: MBA Questions,   Published by: T-Code Scripts
MCQs:  Debit balance as per bank pass book mean_____________?
Category: MBA Questions,   Published by: T-Code Scripts