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WorksheetsCapital Expenditure and Revenue Expenditure
Total questions: 10
Worksheet time: 5mins
Which of the following is capital expenditure?
Depreciation of machinery
Electricity expenses
Cost of extension to building
Repair expenses
Which of the expenses can be considered as capital expenditure?
Petrol costs for a delivery van
Depreciation of a delivery van
Repairs to a delivery van
Adding extra headlights on a delivery van
The following are capital expenditures EXCEPT the ...
Installation of an air conditioning system
Decoration of office space
Fire insurance on a building
Renovation of office space
Which of these is NOT a list of revenue expenditure?
Stationery, supplies, merchandise
Rent, insurance, machine repair expense
Office air conditioning system
Legal fees on the assets purchased
Which of the following is a capital expenditure?
Wages and salaries
Insurance
Depreciation of machinery
Cost of upgrading machinery to increase production capacity
Which of the following expenditures incurred in connection with the acquisition of a piece of machinery should be charged to the asset account?
Transportation charges
Installation charges
Both A and B
Neither A and B
Which of the following is NOT true of revenue expenditure?
It is an expenditure which affects the assets of the business
It will be debited from the statement of profit or loss
It is an expenditure which involve cash
It is an expenditure that keeps an asset in working condition
Which of the following is NOT capital expenditure?
Architect's fees for a new building
Fire insurance premium on a new building
Expenditure incurred in the construction of parking space for staff
Air ticket paid for the purchase of machinery
Which of the following are capital expenditures to Puan Ros, a convenience store owner?
i Fitting partitions
ii Additional shop counter
iii Renewing signboards
iv New tyre for a van
i and ii
i, ii and iv
ii, iii and iv
iii and iv
Which of the following is NOT true of capital expenditures?
It will decrease the capital of the business
It will increase the capital of the business
It is an expenditure that improve an asset's working condition
It is an expenditure which involve cash
