Accounting Multiple Choice Question – 6 September 2022

Which item below should be treated as capital expenditure?

Select ONE answer:

1. the cost of a new printer for an existing computer system
2. repair costs to a car which are not covered by insurance
3. rent paid on a factory, whilst the company negotiated the purchase of the 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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