Understanding Financial Concepts

What is the sale of a building classified as?

• Property appraisal

• Capital Receipt

• Construction contract

• Commercial lease agreement

What is the purchase of machinery categorized as?

• Maintenance Cost

• Operating Expense

• Capital Expenditure

• Research and Development Expense

What type of expenditure is paying salaries?

• Capital expense

• Non-operating expense

• Revenue Expenditure

• Investment expenditure

What type of receipt is interest earned on investments?

• Rental income

• Dividend income

• Capital gains

• Revenue Receipt

What is the cost of repairing a vehicle considered?

• An expense.

• A liability.

• An asset.

• A revenue.

What type of expenditure is the purchase of land?

• Capital expenditure

• Maintenance expenditure

• Revenue expenditure

• Operational expenditure

What type of expenditure is the cost of utilities?

• Investment expenditure

• Capital expense

• Non-operating expense

• Revenue Expenditure

What is the classification of a loan taken by a business?

• Revenue

• Liability

• Equity

• Asset

What type of receipt is a tax refund?

• A Revenue Receipt

• A sales receipt.

• A purchase receipt.

• A donation receipt.

What is the cost of heavy advertising considered?

• A revenue source for the company.

• A Capital Expenditure

• A Revenue Expenditure

• A Deferred Revenue Expenditure