Finance and Capital Expenditure Quiz

What is start-up capital used for?

• Paying wages

• Buying long-term assets to begin trading

• Paying utility bills

• Covering marketing costs

What is working capital needed for?

• Expanding into new markets

• Buying fixed assets

• Paying day-to-day expenses

• Increasing profits

Which of the following is an example of capital expenditure?

• Paying monthly rent

• Buying gym equipment

• Paying electricity bills

• Purchasing office supplies

Revenue expenditure refers to:

• Money spent on buildings and machinery

• Money used to repay long-term loans

• Money spent on day-to-day operating costs

• Money used to buy shares

Which of the following would most likely be classified as revenue expenditure for a sports center?

• Gym equipment

• Water bills

• Construction of a new wing

• Office renovation

Which of the following would be considered capital expenditure?

• Employee wages

• Maintenance of equipment

• Purchases of building

• Utility bills

Why does a business need finance?

• To increase competition

• To pay taxes

• To expand the business

• To reduce employee numbers

What is one responsibility of the finance department?

• Marketing new products

• Recording financial transactions

• Hiring employees

• Managing operations

Office computers purchased by the sports center are considered:

• Revenue expenditure

• Capital expenditure

• Working capital

• Operational costs

The maintenance of gym equipment is an example of:

• Capital expenditure

• Working capital

• Revenue expenditure

• Start-up capital