Understanding Types of Expenditure

What is considered a capital expenditure?

• Inventory

• Machinery and equipment

• Rent

• Salaries

Which of the following is an example of intangible capital expenditure?

• Vehicles

• Fixtures and fittings

• Goodwill

• Heating and lighting

Which type of expenditure includes rent?

• Capital expenditure

• Revenue expenditure

• Both capital and revenue expenditure

• Neither capital nor revenue expenditure

What type of expenditure is associated with the purchase of land?

• Revenue expenditure

• Capital expenditure

• Operating expenditure

• Financial expenditure

Which of the following is a revenue expenditure?

• Patents

• Brand names

• Insurance

• Buildings and premises

What is the term for the cost associated with the use of water in a business?

• Capital expenditure

• Revenue expenditure

• Intangible expenditure

• Depreciation

Which of the following is NOT a capital expenditure?

• Trademarks

• Vehicles

• Inventory

• Land

What type of expenditure is associated with salaries?

• Capital expenditure

• Revenue expenditure

• Intangible expenditure

• Depreciation

Which of the following is an example of tangible capital expenditure?

• Goodwill

• Patents

• Buildings and premises

• Marketing

What type of expenditure is associated with straight-line depreciation?

• Capital expenditure

• Revenue expenditure

• Intangible expenditure

• Financial expenditure