Day: December 2, 2019

Which of the following is revenue expenditure?

Select ONE answer:

1. The cost of acquiring machinery for continuous use in the business.
2. The introduction of additional capital by a proprietor.
3. The cost of advertising a mid-season sale.
4. The transfer of surplus funds from a bank current account to a bank deposit account.

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

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

The answer is 3

1. Not correct – The cost of acquiring machinery for continuous use in the business is capital expenditure.
2. Not correct – The introduction of additional capital by a proprietor is capital (not capital expenditure).
3. Correct
4. Not correct – The transfer of surplus funds from a bank current account to a bank deposit account is not expenditure at all.

 

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