Tag: AQA

In the case of a newsagent, which of the following is a revenue receipt?

Select ONE answer:

1. The proceeds of the sale of plant and equipment.
2. Money received from an insurance company as a result of crashing a delivery vehicle.
3. A refund received from a supplier as compensation for damaged stock supplied.
4. None of the above.

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 – The proceeds of the sale of plant and equipment is a capital receipt.
2. Not correct – Money received from an insurance company as a result of crashing a delivery vehicle is a capital receipt
3. Correct
4. Not correct

 

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Which of the following is revenue expenditure?

Select ONE answer:

1. The cost of acquiring machinery for continuous use in the business.
2. The introduction of additional capital by a proprietor.
3. The cost of advertising a mid-season sale.
4. The transfer of surplus funds from a bank current account to a bank deposit account.

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 – The cost of acquiring machinery for continuous use in the business is capital expenditure.
2. Not correct – The introduction of additional capital by a proprietor is capital (not capital expenditure).
3. Correct
4. Not correct – The transfer of surplus funds from a bank current account to a bank deposit account is not expenditure at all.

 

This work is licensed under a Creative Commons Attribution 4.0 International License.

In the case of a vehicle retailer, which of the following is capital expenditure?

Select ONE answer:

1. The annual cost of a computer maintenance contract.
2. Legal fees relating to employee accident claims.
3. The cost of constructing a roof over the service station area.
4. The purchase of vehicles for re-sale.

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 – The annual cost of a computer maintenance contract is revenue expenditure.
2. Not correct – Legal fees relating to employee accident claims is revenue expenditure.
3. Correct
4. Not correct – The purchase of vehicles for re-sale is revenue expenditure

 

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which of the following is capital expenditure?

Select ONE answer:

1. The cost of repairing a vehicle.
2. The cost of acquiring a vehicle for re-sale.
3. Proceeds arising from the sale of a van that had been used in the business to make deliveries to customers.
4. The cost of a new vehicle acquired for continuing use in the business.

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 4

1. Not correct – The cost of repairing a vehicle is revenue expenditure.
2. Not correct – The cost of acquiring a vehicle for re-sale (a purchase) is revenue expenditure.
3. Not correct – Proceeds arising from the sale of a van that had been used in the business to make deliveries to customers is a capital receipt.
4. Correct

 

This work is licensed under a Creative Commons Attribution 4.0 International License.

Capital expenditure is . . .

Select ONE answer:

1. money brought into a firm by its proprietor.
2. expenditure incurred to finance the day-to-day operations of a firm.
3. expenditure incurred on the acquisition or improvement of fixed assets.
4. None of the above.

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 – is capital (not capital expenditure).
2. Not Correct – is revenue expenditure.
3. Correct
4. Not Correct

 

This work is licensed under a Creative Commons Attribution 4.0 International License.