Day: October 25, 2021

Alex owns a road haulage business.

What would be classified as capital expenditure?

Select ONE answer:

1. purchase of special number plates for new lorries
2. purchase of replacement fuel pump for lorries
3. purchase of replacement tyres for lorries
4. purchase of road tax licence

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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