Accounting - 4AC1 PearsonEdexcel

Capital Expenditure And Revenue Expenditure

Akopọ

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.

Awọn Afojusun

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

Akọ̀wé Ẹ̀kọ́

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.

O wa lori ohun elo Green Bridge

Gba ohun elo Green Bridge CBT sori foonu tabi kọmputa rẹ lati ri awọn akọsilẹ ẹkọ ni kikun, awọn ibeere adaṣe, ati diẹ sii.

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Ìdánwò Ẹ̀kọ́

Oriire fun ipari ẹkọ lori Capital Expenditure And Revenue Expenditure. Ni bayi ti o ti ṣawari naa awọn imọran bọtini ati awọn imọran, o to akoko lati fi imọ rẹ si idanwo. Ẹka yii nfunni ni ọpọlọpọ awọn adaṣe awọn ibeere ti a ṣe lati fun oye rẹ lokun ati ṣe iranlọwọ fun ọ lati ṣe iwọn oye ohun elo naa.

Iwọ yoo pade adalu awọn iru ibeere, pẹlu awọn ibeere olumulo pupọ, awọn ibeere idahun kukuru, ati awọn ibeere iwe kikọ. Gbogbo ibeere kọọkan ni a ṣe pẹlu iṣaro lati ṣe ayẹwo awọn ẹya oriṣiriṣi ti imọ rẹ ati awọn ogbon ironu pataki.

Lo ise abala yii gege bi anfaani lati mu oye re lori koko-ọrọ naa lagbara ati lati ṣe idanimọ eyikeyi agbegbe ti o le nilo afikun ikẹkọ. Maṣe jẹ ki awọn italaya eyikeyi ti o ba pade da ọ lójú; dipo, wo wọn gẹgẹ bi awọn anfaani fun idagbasoke ati ilọsiwaju.

  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

O wa lori ohun elo Green Bridge

Gba ohun elo Green Bridge CBT sori foonu tabi kọmputa rẹ lati ri awọn akọsilẹ ẹkọ ni kikun, awọn ibeere adaṣe, ati diẹ sii.

Awọn akọsilẹ ẹkọ ni kikun pẹlu awọn aworan apejuwe
Oluranlọwọ ẹkọ ti AI ṣe agbara rẹ
Kọ ẹkọ laisi intanẹẹti, nigbakugba, nibikibi
O wa lori Android, Windows, macOS, ati Linux

O wa lori ohun elo Green Bridge

Gba ohun elo Green Bridge CBT sori foonu tabi kọmputa rẹ lati ri awọn akọsilẹ ẹkọ ni kikun, awọn ibeere adaṣe, ati diẹ sii.

Awọn akọsilẹ ẹkọ ni kikun pẹlu awọn aworan apejuwe
Oluranlọwọ ẹkọ ti AI ṣe agbara rẹ
Kọ ẹkọ laisi intanẹẹti, nigbakugba, nibikibi
O wa lori Android, Windows, macOS, ati Linux

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Ṣe o fẹ ṣe adaṣe awọn ibeere idanwo adaṣe nipa Capital Expenditure And Revenue Expenditure? Ṣe igbasilẹ ohun elo Green Bridge CBT lati wọle si awọn ibeere idanwo adaṣe ati awọn ayẹwo adaṣe kikun fun koko-ọrọ yii.

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