Understanding Types of Expenditure

Thomas, Isabelle, and Elsie are starting a new business! They need to decide which of the following expenses is a capital expenditure. Can you help them choose the right one?

• Rent

• Purchase of machinery

• Salaries

• Marketing

Mira, Ishaan, and Oscar are playing a game where they have to spot the tangible non-current asset among the following. Can you help them choose the right one?

• Goodwill

• Patents

• Land

• Brand names

Oliver, Freya, and William are playing a business board game. They need to pick out the intangible non-current asset from the list below to win a bonus round! Which one should they choose?

• Vehicles

• Fixtures and fittings

• Trademarks

• Equipment

Samuel, Daniel, and Oliver are discussing their business expenses. Which of these would be considered a revenue expenditure for their company?

• Buildings and premises

• Inventory

• Brand names

• Machinery

Aarav, Scarlett, and Thomas are helping their school decide on some big purchases. Which of the following is NOT considered a capital expenditure?

• Purchase of land

• Purchase of inventory

• Purchase of vehicles

• Purchase of equipment

Matilda, Oliver, and Jacob are discussing their business expenses. Which of the following is considered a revenue expenditure?

• Purchase of patents

• Purchase of machinery

• Payment of rent

• Purchase of land

Aarav, Jacob, and Priya are discussing how to account for the value of their new classroom equipment over time. Which of the following is a method they could use to depreciate these assets?

• Reducing balance depreciation

• Increasing balance depreciation

• Asset appreciation

• Asset revaluation

Rohan, Mia, and Henry are discussing how to spread the cost of a new computer over its useful life. Which method means charging a fixed amount each year?

• Charging a fixed amount each year

• Charging a variable amount each year

• Increasing the asset value each year

• Ignoring depreciation

Matilda, Benjamin, and Kiara are playing a game where they have to spot the odd one out! Which of these is NOT a tangible non-current asset?

• Buildings

• Fixtures and fittings

• Brand names

• Vehicles

Rosie, Anaya, and Emily are discussing their school’s expenses. Which of the following is considered a revenue expenditure?

• Purchase of land

• Payment of insurance

• Purchase of trademarks

• Purchase of machinery