Accounting - 4AC1 PearsonEdexcel

Capital Expenditure And Revenue Expenditure

Gbogbo ọrọ náà

A business spends money on hundreds of things in a single month: a new delivery van, a tank of fuel for it, a repair to the roof, an extension that doubles the size of the workshop. Every one of those payments has to be filed under one of two labels, and getting the label wrong quietly distorts both the profit figure and the value of everything the business owns.

In this lesson you will learn to tell capital expenditure and revenue expenditure apart, classify real transactions correctly, and explain what goes wrong in the financial statements when the classification is made incorrectly.

Ebumnobi

  1. Explain the terms capital expenditure and revenue expenditure
  2. Explain the importance of the correct treatment of capital expenditure and revenue expenditure

Maapụ uche

E seela isiokwu a ka ị hụ otu echiche si ejikọta.

Mepee maapụ uche na ngwa

Kaadị ncheta

Omume ncheta ngwa ngwa n'ihe a na-anwale n'isiokwu a.

Mee omume kaadị ndị a na ngwa

Akwụkwọ Ọmụmụ

Buy a delivery van and pay for its fuel in the same week, and both payments leave the bank account the same way, yet accountants treat them completely differently. The van will keep working for the business for years to come; the fuel is gone the moment the engine burns it. Accounting has a name for each type of spending, and the distinction decides where the cost appears in the financial statements.

Ndetu Nkuzi Zuru Ezu di na Ngwa Green Bridge

Nweta ngwa Green Bridge CBT na ekwenti gi ma o bu kompiuta maka ulo akwukwo IGCSE zuru oke: akwukwo ule ndi gara aga, usoro nyocha, eserese uche, kaadi omumu na nkuzi olu.

Akwụkwọ ndụmọdụ zuru oke nwere eserese
Onye inyeaka mmụta AI
Ule nnwale nwere oge a na-ahazi ozugbo i mechara
Ọ dị na Android, Windows, macOS, na Linux Ngwa iOS na-abia n'oge na-adighi anya

Nnyocha Ọmụmụ

Ekele diri gi maka imecha ihe karịrị na Capital Expenditure And Revenue Expenditure. Ugbu a na ị na-enyochakwa isi echiche na echiche ndị dị mkpa, ọ bụ oge iji nwalee ihe ị ma. Ngwa a na-enye ụdị ajụjụ ọmụmụ dị iche iche emebere iji kwado nghọta gị wee nyere gị aka ịmata otú ị ghọtara ihe ndị a kụziri.

Ị ga-ahụ ngwakọta nke ụdị ajụjụ dị iche iche, gụnyere ajụjụ chọrọ ịhọrọ otu n’ime ọtụtụ azịza, ajụjụ chọrọ mkpirisi azịza, na ajụjụ ede ede. A na-arụpụta ajụjụ ọ bụla nke ọma iji nwalee akụkụ dị iche iche nke ihe ọmụma gị na nkà nke ịtụgharị uche.

Jiri akụkụ a nke nyocha ka ohere iji kụziere ihe ị matara banyere isiokwu ahụ ma chọpụta ebe ọ bụla ị nwere ike ịchọ ọmụmụ ihe ọzọ. Ekwela ka nsogbu ọ bụla ị na-eche ihu mee ka ị daa mba; kama, lee ha anya dị ka ohere maka ịzụlite onwe gị na imeziwanye.

  1. Which of the following is capital expenditure? A) Fuel for a delivery van B) Installation cost of a new machine C) Wages of factory staff D) Insurance premium Answer: B
  2. A business wrongly records a $1,000 repair bill as capital expenditure. What is the effect on profit for the year? A) Profit is understated by $1,000 B) Profit is overstated by $1,000 C) Profit is unaffected D) Profit is overstated by $2,000 Answer: B
  3. Which financial statement records revenue expenditure? A) Statement of financial position B) Income statement C) Statement of changes in equity D) Trial balance only Answer: B
  4. A machine costs $5,000, delivery costs $200, and a one-year insurance policy costs $150. What is the capital expenditure? A) $5,000 B) $5,150 C) $5,200 D) $5,350 Answer: C
  5. Which of the following best describes capital expenditure? A) Spending that benefits only the current period B) Spending on acquiring or improving a non-current asset C) Spending on inventory for resale D) Spending on staff wages Answer: B

Rue ajuju ndi a n'ime ngwa ahu

Rue ajuju ndi a n'ime ngwa ahu

Meecha Ajụjụ Ule Ọmarịcha

Ị chọrọ ime ajụjụ ule ọmarịcha gbasara Capital Expenditure And Revenue Expenditure? Budata ngwa Green Bridge CBT iji nweta ajụjụ ule ọmarịcha na nyocha zuru ezu gbasara isiokwu a.

Budata Ngwa Ahụ Na Google Playstore

Ihe nile ichoro iji nwee ihe ịga nke ọma na JAMB, WAEC & NECO.

Green Bridge CBT Mobile App
Onye Enyemaka Nkata AI Nke Ọmụmụ Ihe Ahaziri Maka Gị
Ajụjụ ule IGCSE, JAMB, WAEC na NECO karịrị 200,000
Ihe karịrị 1200 Nkọwa Nkuzi
Nkwado Na-enweghị Ịntanetị - Mụọ Ihe Mgbe Ọ Bụla, Ebe Ọ Bụla
Jadawalin Gada Kore
Akọkọ akọle iwe & Ibeere agbara
Sọfụma Ọrụ Gi & Ọganihu Gi
Nkọwa Miri Emi Maka Ọmụmụ Ihe Zuru Ezu