2. Fauzana owns a business that makes and sells pets clay. during the financial year ended 31 july 2020, she incurred the following items of expenditure. state whether each of the belownis capital expenditure or revenue expenditure Clay for making the pets toys.b.а.Wages of sales staffPurchase of potters wheel for use in thebusinessС.Installation costs for the potters wheelWages of staff operating the potterswheeld.е.f.Redecoration of store roomg.Payment of extra wages to own staff forfitting the alarm and cctvh. Payment of architect fees for designingthe proposed new shopi.Purchase of new telephone system forthe business

Money spent by a business or organisation on acquiring or maintaing fixed assets are called capital…

Answered: state whether each of the belownis…

Business

Accounting

state whether each of the belownis capital expenditure or revenue expenditure

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Motor Vehicle Insurance

Motor vehicle insurance is a contract between the insurance company that provides insurance cover and the person who owns the vehicle. According to the terms and conditions of the insurance contract, the insurance company reimburses the policyholder for losses and damages. This insurance policy covers the financial risks of the motor vehicle owner. Electronic vehicles are also covered in a vehicle insurance policy, but the insurance rate is relatively higher than other motor vehicle insurance. Motor vehicle insurance is otherwise called an automotive insurance policy.

Question

2. Fauzana owns a business that makes and sells pets clay. during the financial year ended 31 july 2020, she incurred the following items of expenditure. state whether each of the belownis capital expenditure or revenue expenditure

Clay for making the pets toys.
b.
а.
Wages of sales staff
Purchase of potters wheel for use in the
business
С.
Installation costs for the potters wheel
Wages of staff operating the potters
wheel
d.
е.
f.
Redecoration of store room
g.
Payment of extra wages to own staff for
fitting the alarm and cctv
h. Payment of architect fees for designing
the proposed new shop
i.
Purchase of new telephone system for
the business

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