Day: November 29, 2019

Capital expenditure is . . .

Select ONE answer:

1. money brought into a firm by its proprietor.
2. expenditure incurred to finance the day-to-day operations of a firm.
3. expenditure incurred on the acquisition or improvement of fixed assets.
4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not Correct – is capital (not capital expenditure).
2. Not Correct – is revenue expenditure.
3. Correct
4. Not Correct

 

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