Capital expenditure is recorded in: MCQ with Answer and Explanation

Question Report Error

Capital expenditure is recorded in:

A. Profit & Loss Account

B. Balance Sheet

C. Trading Account

D. Manufacturing Account

Answer: Option B

Solution (By JKExamLibrary)

Capital expenditure results in acquisition of assets, shown on the asset side of Balance Sheet.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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The 'Advance Ruling' under GST provides:

A. Penalty imposition

B. Clarity on tax liability on proposed transactions

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Advance ruling helps businesses determine GST implications before undertaking a transaction.

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The 'Roll-forward Procedures' in audit are performed to:

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Correct Answer: Option B

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The 'Earnings Before Interest, Tax, Depreciation and Amortisation' (EBITDA) is a measure of:

A. Cash flow from investing

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C. Net profit

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Correct Answer: Option B

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EBITDA focuses on operational performance before non-cash items and capital structure.

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