Accounting Multiple Choice Question – 4 January 2024

Which of the following should be accounted for as capital expenditure?

Select ONE answer:

1. The annual cost of painting a factory floor
2. The repair of a window in a building
3. The purchase of a vehicle by a garage for re-sale
4. Legal fees incurred on the purchase of a building

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Legal fees incurred on the purchase of a building – the others are all revenue expenditure.

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