Which of the following is a capital expenditure?

A. all indirect costs.
B. all direct costs.
C. indirect and direct costs.
D. all specific costs

Which one of the following should be considered a revenue expenditure?

A. 1000 paid for the execution of a new plant
B. Loss of 10,000 incurred in increasing the sitting accommodation of a hotel
C. Damage paid on account of breach of a contract to supply certain goods
D. Repair to machinery purchased, second hand.

A. P&L A/C is debited with 1,400
B. P&L A/C is debited with 1,200
C. 200 is shown as current asset
D. Both B. and C. above

Adjustments for prepaid subscription fees:
P& L A/c Extract
Total subscription fees paid 1,400
Less: Subscription fees prepaid
Relating to next A/c period 200
Subscription fees 1200
The prepaid subscription fees of ` 200 will be shown as a current asset in the Balance Sheet as it is
an expense relating to the next accounting period but has been paid in the current accounting
period.]

The periodic total of sales day book is posted to___________?

A. Sales A/c
B. Cash sales A/c
C. Sales return A/c
D. Credit sales A/c

Payment of expenses will ______ the assets

A. Increase
B. Reduce
C. apportion
D. Overstate