Element 8 8.1.3 Quiz on Capital and Revenue Expenditure

What is capital income?

• Income from day-to-day operations

• Income from sales of assets

• Income from routine maintenance

• Income from office supplies

Which of the following is considered revenue expenditure?

• Purchase of machinery

• Building a new office

• Repairs and maintenance

• Buying land

What is revenue income?

• Income from the sale of fixed assets

• Income from investments

• Income from regular business activities

• Income from issuing shares

Which of the following is an example of capital expenditure?

• Paying salaries

• Purchasing raw materials

• Constructing a new factory

• Advertising costs

Which of the following would be classified as capital income?

• Revenue from sales

• Interest received on savings

• Proceeds from issuing shares

• Rent received

What type of expenditure is the cost of insurance premiums?

• Capital expenditure

• Revenue expenditure

• Investment expenditure

• Deferred expenditure

Which of the following is not an example of revenue income?

• Sales revenue

• Rent received

• Commission earned

• Sale of a company vehicle

What type of expenditure is the purchase of office supplies?

• Capital expenditure

• Revenue expenditure

• Deferred expenditure

Which of the following would be considered capital income?

• Revenue from services rendered

• Dividends received

• Proceeds from a bank loan

• Interest on deposits

Which of the following is an example of capital expenditure?

• Payment of utility bills

• Purchase of a delivery van

• Staff training costs

• Office cleaning services