[amp_mcq option1=”a-4, b-1, c-2, d-3″ option2=”a-3, b-1, c-4, d-2″ option3=”a-4, b-3, c-2, d-1″ option4=”a-3, b-2, c-1, d-4″ correct=”option1″]<\/p>\n
The correct answer is: A. a-4, b-1, c-2, d-3<\/p>\n
Preliminary expenses are incurred in connection with the formation of a company. They are not revenue expenditure as they do not result in the creation of an asset or the rendering of a service. They are, therefore, capital expenditure.<\/p>\n
Interest on loan for business is a revenue expenditure as it is incurred in the course of earning revenue.<\/p>\n
Life subscription is a capital receipt as it is a receipt of money in consideration of the transfer of an asset.<\/p>\n
Interest on bank deposits is a revenue receipt as it is a receipt of money in consideration of the lending of money.<\/p>\n
Here is a brief explanation of each option:<\/p>\n
This option is correct as it correctly matches the items in List-I with the items in List-II.<\/p>\n
This option is incorrect as it incorrectly matches the item “a. Preliminary expenses” with the item “3. Deferred revenue expenditure”. Preliminary expenses are capital expenditure, not deferred revenue expenditure.<\/p>\n
This option is incorrect as it incorrectly matches the item “b. Interest on loan for business” with the item “2. Revenue receipts”. Interest on loan for business is a revenue expenditure, not a revenue receipt.<\/p>\n
This option is incorrect as it incorrectly matches the item “c. Life subscription” with the item “4. Capital Receipts”. Life subscription is a capital receipt, not a capital expenditure.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”a-4, b-1, c-2, d-3″ option2=”a-3, b-1, c-4, d-2″ option3=”a-4, b-3, c-2, d-1″ option4=”a-3, b-2, c-1, d-4″ correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-50282","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n