Accounting Multiple Choice Question – 2 December 2019

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

Accounting

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:

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

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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Author: stuart001uk2014

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

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