Capital and Revenue Items

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

Purchase of new computer for use in the office.

• capital expenditure

• revenue expenditure

• capital receipt

• revenue receipt

Charges to install and set up the new computer in the office.

• revenue expenditure

• capital expenditure

• capital receipt

• revenue receipt

Selling out of date machinery for $3,000.

• capital expenditure

• revenue expenditure

• capital receipt

• revenue receipt

Selling old office furniture for $500.

• capital expenditure

• revenue expenditure

• capital receipt

• revenue receipt

Owner invests $10,000 into the business.

• capital expenditure

• revenue expenditure

• capital receipt

• revenue receipt

Goods bought for resale.

• capital expenditure

• revenue expenditure

• capital receipt

• revenue receipt

Goods sold on credit to customers.

• capital expenditure

• revenue expenditure

• capital receipt

• revenue receipt

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 capital expenditure?

• heat and lighting

• stationery

• owners funds

• machinery