Accounting Multiple Choice Question – 1 December 2019

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 View all posts by stuart001uk2014