Chapter 10 Adv Accounting

Which of the following describes Capital Expenditure?

• Cost to buy non-current assets
• Cost to operate non-current assets
• Cost to repair and maintain
• Recorded in Income Statement

Which of the following describes Revenue Expenditure?

• Cost to buy non-current assets
• Cost to operate non-current assets
• Benefits that last for more than one year 
• Recorded in Balance Sheet

Which of the following is a Capital Expenditure?

• Purchase of Machinery
• Repairs to Machinery
• Repainting of Office walls
• Stationery

Which of the following is a Revenue Expenditure?

• Purchase of Furniture
• Repairs to Machinery
• Extension of Office 
• Installation of Equipment

Purchase price of 3 acres of land

• Land
• Land Improvements
• Building
• Furniture

Delinquent real estate taxes on the land to be paid by your company

• Land
• Land Improvements
• Building
• Furniture

Additional dirt and earthmoving

• Land
• Land Improvements
• Building
• Furniture

Fence around the boundary of the property

• Land
• Land Improvements
• Building
• Furniture

Architect's fee for the design of the building

• Land
• Land Improvements
• Building
• Furniture

Parking lots on the property

• Land
• Land Improvements
• Building
• Furniture