QUIZ 1 : TOPIC 9 [ACCOUNTING FOR NON CURRENT ASSETS]

Which of the following can be considered as a capital expenditure?

• Purchase price of machinery

• costs of upgrading the machinery

• costs of maintaining the machinery

• installation costs of machinery

• fire insurance

Depreciation is a process of

• asset devaluation

• cost accumulation

• cost allocation

• asset valuation

Which of the following expenses could considered as capital expenditure?

• petrol costs for motor van

• depreciation of motor van

• repairs to motor van

• installation of air-condition unit on motor van

Which of the costs listed below is not a revenue expenditure?

• petrol costs for motor van

• repairs of motor van

• purchase of motor vehicle to be used in the business

• electricity costs of using machinery

The following are considered to be a revenue expenditures except :

• costs of goods purchased from a supplier

• salary paid to a clerk

• installation costs of an air-conditioner in the office

• costs of repainting the office

The Net book value of depreciable asset is the difference between

• depreciation and accumulated depreciation

• cost and accumulated depreciation

• cost and depreciation expense

• none of above

The following are considered to be a capital expenditures except :

• costs of assets purchased for use in the business

• salary paid to a manager

• import duty of a machine

• cost of painting the office

Which of the following expenditure incurred in connection with the acquisition of a building should be charged to the expense accounts?

• legal fees on the building purchased

• expenses incurred in the construction of parking space for staff

• fire insurance on building

• installation cost of air-conditioning for the building

Determine the following items which are a capital expenditure.

• costs of renovation to building

• purchase of goods for resale

• decoration for business premises

• purchase of stationery for office use

• installation of air-conditioning system

Determine the revenue expenditure for the following items.

• costs of renovation to building

• purchase of goods for resale

• decoration for business premises

• purchase of stationery for office use

• installation of air-conditioning system