Which of the following transactions is capital expenditure and which revenue expenditure? Tick the correct box. Capital Revenue (a) A bookseller buys a car for its director for $9,000. (b) In the first year, the car is depreciated by $900. (c) The business buys books for $1,500. (d) The business builds an extension for $7,600. (e) The original building is repainted, a job costing $1,200. (f) A new sales assistant is taken on and his salary in the first year is $10,000.
Which of the following transactions is capital expenditure and which revenue expenditure? Tick the correct box. Capital Revenue (a) A bookseller buys a car for its director for $9,000. (b) In the first year, the car is depreciated by $900. (c) The business buys books for $1,500. (d) The business builds an extension for $7,600. (e) The original building is repainted, a job costing $1,200. (f) A new sales assistant is taken on and his salary in the first year is $10,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following transactions is capital expenditure and which revenue expenditure? Tick the correct box.
Capital Revenue
(a) A bookseller buys a car for its director for $9,000.
(b) In the first year, the car is
(c) The business buys books for $1,500.
(d) The business builds an extension for $7,600.
(e) The original building is repainted, a
(f) A new sales assistant is taken on and his salary in the first year is $10,000.
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