Capital and Revenue - Income and Expenditure

Which of the following is a Revenue Expenditure

• Interest Received on Savings

• Rent Received from Tenant

• Purchasing Start-up Machinery

• Purchasing Raw Materials

Which of the following is NOT capital expenditure for a T- Shirt factory?

• Shop Rent

• Office Furniture

• Purchasing Land

• Purchasing Machinery

Revenue Expenditure is money spent on items in the day to day running of a business; (E.g Raw materials)

• True

• False

Which of the following is NOT a revenue expenditure

• Cost of ink cartridges

• Purchase of paper

• Cost of printer mainainance

• Purchase of printer

Which of the following would be considered Capital income?

• Monthly rent receieved

• Sales of fixed assets

• Discounts received

• Receipts from cash sales

Which of the following best defines Capital expenditure?

• Amount spent on purchase of fixed assets

• Amount spent on running the day to day working of the business

• Amount invested by the owner

• Amount spent on maintenance of machinery

Capital Expenditure is money spent by the business on non-current assets that will stay in the business for a reasonable period of time; (E.g Land)

• True

• False

Which of the following is NOT an example of revenue Income

• Early Payment Discounts

• Cash from sales

• Owners Capital

• Interest Received