Accounting Multiple Choice Question – 1 December 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting

In the case of a vehicle retailer, which of the following is capital expenditure?

Select ONE answer:

  1. The annual cost of a computer maintenance contract.
  2. Legal fees relating to employee accident claims.
  3. The cost of constructing a roof over the service station area.
  4. The purchase of vehicles for re-sale.

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 – The annual cost of a computer maintenance contract is revenue expenditure.
  2. Not correct – Legal fees relating to employee accident claims is revenue expenditure.
  3. Correct
  4. Not correct – The purchase of vehicles for re-sale is revenue expenditure

 

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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