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Capital and revenue expenditure - short answer questions


Question 1

Explain the difference between capital and revenue expenditure.

Question 2

Consider the following list of expenses incurred by a company. Examine this list and determine if each expense is revenue or capital expenditure.

A. Purchase of a motor car
B. Claim for a meal
C. Purchase of shares in a supplier
D. Purchase of a new computer
E. Payment for hotel accommodation
F. Receipt for petrol
G. Purchase of raw materials
H. Purchase of an autoclave
I. Purchase of a set of spanners
J. Payment of an insurance premium
K. Wages
L. Purchase of a new plot of land.