CAPITAL REVENUE EXPENDITURE VERSION 1

Which one is capital expenditure

• heat and lighting

• stationery

• owners funds

• machinery

Which one is revenue expenditure

• trademarks

• postage

• furniture

• credit sales

In which of the following might revenue expenditure be used?

• Purchase of machinery

• Money spent for patents

• Money spent on wages

• Money paid for a franchise license

What is capital expenditure?

• Money spent for fixed assets which last about 6 months.
• Money spent for fixed assets which last about for more than a year.
• Money spent on a day-to-day basis.
• Money spent per hour rate.

What is capital expenditure?

• Money spent on variable assets lasting 1 year
• Money spent on fixed assets lasting 1 year
• Money spent on variable assets lasting 10 years
• Money spent on fixed assets lasting 10 years

What is revenue expenditure?

• Money spent on monthly expenses
• Money spent on hour to hour expenses
• Money spent on day to day expenses
• None of the above

Which of the following describes Capital Expenditure?

• Cost to buy non-current assets
• Cost to operate non-current assets
• Cost to repair and maintain
• Recorded in Income Statement

Which of the following describes Revenue Expenditure?

• Cost to buy non-current assets
• Cost to operate non-current assets
• Benefits that last for more than one year 
• Recorded in Balance Sheet

Which of the following is a Revenue Expenditure?

• Purchase of Furniture
• Repairs to Machinery
• Extension of Office 
• Installation of Equipment