Accounting Multiple Choice Question – 12 July 2022

The following items of expenditure take place during the first month of a transport business.

• rent – £1 000
• insurance of building – £1 300
• insurance of vehicle – £350
• road tax – £500
• purchase of vehicle – £15 000
• number plate for vehicle – £150
• painting of vehicle in company colours – £750
• wages for lorry driver – £100
• wages for painting vehicle – £150

What is the total capital expenditure?

Select ONE answer:

1. £15 000
2. £15 500
3. £16 050
4. £16 550

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
2. Not correct
3. Correct – £15,000 + £150 + £750 + £150
4. Not correct

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