Accounting Multiple Choice Question – 30 March 2021

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

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Which item should be treated as capital expenditure?

Select ONE answer:

  1. the addition of a back-up system on an existing computer at a cost of £900
  2. costs incurred in repairing a car when the costs cannot be recovered from the insurance company
  3. rent paid on a factory, whilst the company negotiated the purchase of that same factory
  4. the replacement of a wooden fence with a new fence

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 1

  1. Correct 
  2. Not correct
  3. Not correct
  4. Not correct

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