Fixed Assets MCQs 2026

Revenue expenditure in accounting refers to

1. Acarrying amount exceeds proceeds on sale✓
2. Bspending that benefits current period only✓
3. Casset at cost less accumulated depreciation✓
4. Dinterest on qualifying asset construction added to cost✓

Disposal of asset in accounting refers to

1. Aasset carried at revalued amount less depreciation✓
2. Bsignificant parts depreciated separately✓
3. Cremoving asset from use and records✓
4. Drecording cost as non-current asset✓

Gain on disposal in accounting refers to

1. Aasset at cost less accumulated depreciation✓
2. Bproceeds exceed carrying amount on sale✓
3. Cinterest on qualifying asset construction added to cost✓
4. Dspending that provides future economic benefits✓

Loss on disposal in accounting refers to

1. Asignificant parts depreciated separately✓
2. Brecording cost as non-current asset✓
3. Ccarrying amount exceeds proceeds on sale✓
4. Dspending that benefits current period only✓

Revaluation model in accounting refers to

1. Aasset carried at revalued amount less depreciation✓
2. Binterest on qualifying asset construction added to cost✓
3. Cspending that provides future economic benefits✓
4. Dremoving asset from use and records✓

Cost model in accounting refers to

1. Arecording cost as non-current asset✓
2. Bspending that benefits current period only✓
3. Casset at cost less accumulated depreciation✓
4. Dproceeds exceed carrying amount on sale✓

Component accounting in accounting refers to

1. Asignificant parts depreciated separately✓
2. Bspending that provides future economic benefits✓
3. Cremoving asset from use and records✓
4. Dcarrying amount exceeds proceeds on sale✓

Borrowing costs capitalization in accounting refers to

1. Aspending that benefits current period only✓
2. Bproceeds exceed carrying amount on sale✓
3. Casset carried at revalued amount less depreciation✓
4. Dinterest on qualifying asset construction added to cost✓

Fixed assets scenario 38: a Pakistani hospital must correctly handle capitalization

1. Aignore the transaction until next fiscal year✓
2. Brecord only one side of the entry✓
3. Cpost directly to retained earnings without analysis✓
4. Ddebit and credit both affected so the equation stays balanced✓

Capital expenditure in accounting refers to

1. Aproceeds exceed carrying amount on sale✓
2. Basset carried at revalued amount less depreciation✓
3. Csignificant parts depreciated separately✓
4. Dspending that provides future economic benefits✓

Capitalization in accounting refers to

1. Aremoving asset from use and records✓
2. Bcarrying amount exceeds proceeds on sale✓
3. Crecording cost as non-current asset✓
4. Dasset at cost less accumulated depreciation✓