Capital Expenditure and Revenue Expenditure

Which of the following is a capital expenditure?

• Depreciation of machinery

• Electricity expenses

• Renovation cost of building

• Repair expenses

Which of the expenses can be considered as capital expenditure?

• Petrol costs for a delivery van

• Depreciation of a delivery van

• Repairs to a delivery van

• Buy a new tire for a van

The following are capital expenditures EXCEPT the ...

• Installation of an air conditioning system

• Decoration of office space

• Insurance premium on a building

• Renovation of office space

Which of these is NOT a list of revenue expenditure?

• Stationery, supplies, merchandise

• Rent, insurance, machine repair expense

• Office air conditioning system

• Legal fees on the assets purchased

Which of the following is a capital expenditure?

• Wages and salaries

• Insurance

• Depreciation of machinery

• Cost of upgrading machinery to increase production capacity

Which of the following expenditures incurred in cost of machinery?

• Delivery charges

• Installation charges

• Both charges

Which of the following is NOT true about revenue expenditure?

• It is an expenditure which affects the assets of the business

• It will be debited from the statement of profit or loss

• It is an expenditure which involve cash

• It is an expenditure that keeps an asset in working condition

Which of the following is NOT a revenue expenditure?

• Interest on loan of machine

• Repay a loan of machine

• Repaint the wall of the building

• Repair a broken window of the building

Which of the following are capital expenditures to Puan Ros?

i Fitting partitions

ii Additional shop counter

iii Renewing signboards

iv New tire for a van

• i and ii

• i, ii and iv

• ii, iii and iv

• iii and iv

Which of the following is NOT true about capital expenditures?

• It will decrease the capital of the business

• It will increase the capital of the business

• It is an expenditure that improve an asset's working condition

• It is an expenditure which involve cash