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🏦 JAIIB AFM Capital and Revenue Expenditure 20 cards
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AFM Capsule Cards PRO Capital and Revenue Expen…
How does the Materiality Concept affect the classification of capital expenditure?
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Materiality Concept in Expenditure
Capital and Revenue Expenditure 33
WA 33
AFM Capsule Cards PRO Capital and Revenue Expen…
Which type of expenditure is generally recurring in nature and occurs frequently in day-to-day business operations?
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Nature of Expenditure (Recurring)
Capital and Revenue Expenditure 31
WA 31
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What is the difference in the 'purpose' between capital and revenue expenditure?
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Purpose of Expenditure
Capital and Revenue Expenditure 31
WA 31
AFM Capsule Cards PRO Capital and Revenue Expen…
Are costs on internally generated assets like Goodwill, Brands, and Customer lists capitalized?
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Internally Generated Goodwill
Capital and Revenue Expenditure 29
WA 29
AFM Capsule Cards PRO Capital and Revenue Expen…
What is the basic journal entry when a fixed asset (or intangible asset) is acquired by cash/cheque?
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Accounting Entry for Capital Exp
Capital and Revenue Expenditure 28
WA 28
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AFM Capsule Cards PRO Capital and Revenue Expen…
How do you differentiate capital and revenue expenditure based on a firm's revenue earning capacity?
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Effect on Revenue Earning Capacity
Capital and Revenue Expenditure 27
WA 27
AFM Capsule Cards PRO Capital and Revenue Expen…
What is the 'Benefit from Expenditure' test for classifying business expenses?
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Benefit Duration Test
Capital and Revenue Expenditure 27
WA 27
AFM Capsule Cards PRO Capital and Revenue Expen…
Where are Capital Expenditure and Revenue Expenditure shown in the final financial statements?
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Balance Sheet vs P&L Treatment
Capital and Revenue Expenditure 27
WA 27
AFM Capsule Cards PRO Capital and Revenue Expen…
What constitutes a Capital Receipt for a business?
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Definition of Capital Receipt
Capital and Revenue Expenditure 26
WA 26
AFM Capsule Cards PRO Capital and Revenue Expen…
Even though Capital Receipts are not routed through P&L, what portion of asset sales goes to P&L?
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Profit/Loss on Capital Receipts
Capital and Revenue Expenditure 26
WA 26
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AFM Capsule Cards PRO Capital and Revenue Expen…
Which Indian Accounting Standard governs the capitalization of intangible assets like software and patents?
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Intangible Assets Capitalization
Capital and Revenue Expenditure 25
WA 25
AFM Capsule Cards PRO Capital and Revenue Expen…
Which initial costs are capitalized when acquiring a fixed asset under Ind AS 16?
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Capitalising Initial Costs
Capital and Revenue Expenditure 22
WA 22
AFM Capsule Cards PRO Capital and Revenue Expen…
Is the replacement of a defective part of machinery classified as capital or revenue expenditure?
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Defective Part Replacement
Capital and Revenue Expenditure 21
WA 21
AFM Capsule Cards PRO Capital and Revenue Expen…
How are freight expenses and daily wages paid for the erection/installation of new machinery treated?
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Freight for New Machinery
Capital and Revenue Expenditure 20
WA 20
AFM Capsule Cards PRO Capital and Revenue Expen…
What is a Revenue Receipt?
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Revenue Receipt Definition
Capital and Revenue Expenditure 18
WA 18
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What is the primary purpose of incurring a Capital Expenditure?
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Capital Expenditure Definition
Capital and Revenue Expenditure 18
WA 18
AFM Capsule Cards PRO Capital and Revenue Expen…
When can subsequent costs on a fixed asset be classified as Capital Expenditure?
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Capitalising Subsequent Costs
Capital and Revenue Expenditure 20
WA 20
AFM Capsule Cards PRO Capital and Revenue Expen…
How are the costs of opening a new facility or relocating business operations classified?
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New Facility & Relocation Costs
Capital and Revenue Expenditure 20
WA 20
AFM Capsule Cards PRO Capital and Revenue Expen…
If machinery is sold at a price higher than its Written Down Value but lower than cost, what is the excess?
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Excess Sale Price of Asset
Capital and Revenue Expenditure 19
WA 19
AFM Capsule Cards PRO Capital and Revenue Expen…
How does selling trading goods differ from selling a fixed asset in accounting treatment?
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Sale of Goods vs Sale of Asset
Capital and Revenue Expenditure 18
WA 18
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Capital and Revenue Expenditure — JAIIB AFM Capsules

India's #1 short-form JAIIB preparation app. 500+ capsule cards, unlimited mock tests & PDF notes for JAIIB May & Nov 2026 (PPB, IE-IFS, AFM, RBWM). Learn while commuting. Clear JAIIB in your first attempt. Join 5,000+ bankers.

All 20 cards on this page
Materiality Concept in Expenditure How does the Materiality Concept affect the classification of capital expenditure? Nature of Expenditure (Recurring) Which type of expenditure is generally recurring in nature and occurs frequently in day-to-day business… Purpose of Expenditure What is the difference in the 'purpose' between capital and revenue expenditure? Internally Generated Goodwill Are costs on internally generated assets like Goodwill, Brands, and Customer lists capitalized? Accounting Entry for Capital Exp What is the basic journal entry when a fixed asset (or intangible asset) is acquired by cash/cheque? Effect on Revenue Earning Capacity How do you differentiate capital and revenue expenditure based on a firm's revenue earning capacity? Benefit Duration Test What is the 'Benefit from Expenditure' test for classifying business expenses? Balance Sheet vs P&L Treatment Where are Capital Expenditure and Revenue Expenditure shown in the final financial statements? Definition of Capital Receipt What constitutes a Capital Receipt for a business? Profit/Loss on Capital Receipts Even though Capital Receipts are not routed through P&L, what portion of asset sales goes to P&L? Intangible Assets Capitalization Which Indian Accounting Standard governs the capitalization of intangible assets like software and paten… Capitalising Initial Costs Which initial costs are capitalized when acquiring a fixed asset under Ind AS 16? Defective Part Replacement Is the replacement of a defective part of machinery classified as capital or revenue expenditure? Freight for New Machinery How are freight expenses and daily wages paid for the erection/installation of new machinery treated? Revenue Receipt Definition What is a Revenue Receipt? Capital Expenditure Definition What is the primary purpose of incurring a Capital Expenditure? Capitalising Subsequent Costs When can subsequent costs on a fixed asset be classified as Capital Expenditure? New Facility & Relocation Costs How are the costs of opening a new facility or relocating business operations classified? Excess Sale Price of Asset If machinery is sold at a price higher than its Written Down Value but lower than cost, what is the exce… Sale of Goods vs Sale of Asset How does selling trading goods differ from selling a fixed asset in accounting treatment?
Chapters in this paper
Definition, Scope & Accounting Standards including Ind AS Balance Sheet Equation Financial Management - An Overview Taxation: Income Tax/TDS/Deferred Tax Basic Accountancy Procedures Preparation of Final Accounts Ratio Analysis Goods & Services Tax Maintenance of Cash/Subsidiary Books and Ledger Company Accounts - I Financial Mathematics - Calculation of Interest and Annuities An Overview of Cost & Management Accounting Bank Reconciliation Statement Company Accounts - II Financial Mathematics - Calculation of YTM Costing Methods
Modules in AFM
MODULE A: Accounting Principles and Processes MODULE B: Financial Statements and Core Banking Systems MODULE C: Financial Management MODULE D: Taxation and Fundamentals of Costing
JAIIB papers
IE-IFS — Indian Economy & Indian Financial System PPB — Principles & Practices of Banking AFM — Accounting & Financial Management for Bankers RBWM — Retail Banking & Wealth Management
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