The term loan of Rs. 5,00,000 was received from IFCI. It was used as under:
I. Rs. 2,00,000 was advanced to suppliers for capital work-in-progress
II. Rs. 3,00,000 was used for financing the working capital
The interest payable would be treated:
A. on both I and II as capital expenditure
B. on I as capital expenditure and on II as revenue expenditure
C. on I as deferred expenditure and on II as revenue expenditure
D. on I as deferred revenue expenditure and on II as capital expenditure
Answer: Option B
This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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