double entry, capital and revenue expenditure

Which of the following accounts normally has a credit balance?

• Cash

• Capital

• Inventory

• Drawings

If a business purchases a motor vehicle, it is recorded as:

• Revenue income

• Capital income

• Capital expenditure

• Revenue expenditure

A payment for repainting the walls of a building is:

• Capital expenditure

• Revenue expenditure

• Capital receipt

• Asset purchase

When a business purchases goods on credit, the entry in the ledger is:

• Dr Sales, Cr Purchases

• Dr Purchases, Cr Accounts Payable

• Dr Accounts Receivable, Cr Purchases

• Dr Inventory, Cr Accounts Receivable

Which of the following best describes revenue expenditure?

• Expenditure on fixed assets

• Daily operating expenses

• Money used to purchase capital

• Long-term investment

Which of these is not an example of capital expenditure?

• Purchase of machinery

• Repairs to machinery

• Purchase of buildings

• Installation of new equipment

What is the double entry for the owner introducing capital in cash?

• Dr Capital, Cr Cash

• Dr Drawings, Cr Cash

• Dr Cash, Cr Capital

• Dr Cash, Cr Drawings

The correct double entry for paying rent by cheque is:

• Dr Bank, Cr Rent

• Dr Rent, Cr Bank

• Dr Rent, Cr Cash

• Dr Bank, Cr Drawings

A purchase of inventory on credit would be:

• Capital Expenditure

• Revenue Expenditure

• Capital Income

• Asset Disposal

Revenue expenditure includes:

• Buying new computers

• Repairing office chairs

• Adding a new floor to a building

• Purchasing land