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- Capital And Revenue Expenditureauditing-mcqs › capital-and-revenue-expenditure
- Published
- 27 Jul 2019
- Last updated
- 28 May 2026
Which of the following should not be classified as a revenue expenditure?
Multiple choice question for Capital And Revenue Expenditure. Select an option, then review the explanation below.
Explanation
Revenue expenses are costs that are charged to the income statement within the accounting period. While expenses such as loan procurement, sewer installation, and insurance during registration are considered revenue expenses, the cost of accessories bought with a motor vehicle is a capital expense and should not be treated as a revenue expenditure.
More Capital And Revenue Expenditure MCQs
Practice related questions from the same subject.
- 1.If the directors do not appoint the first auditor(s), at which meeting must the shareholders appoint them by passing a resolution?
- 2.When must the board of directors appoint the first auditor of a company?
- 3.Which of the following costs should be classified as a revenue expense rather than a capital expenditure?
- 4.At what percentage of the original cost does an asset's book value allow a company to stop recording depreciation?
- 5.Identify which of the following qualifies as a revenue reserve.