Quiz 55: Capital or Revenue Expenditure Quiz

Test your knowledge of double entry bookkeeping with our capital or revenue expenditure quiz.

Accounting differentiates between two types of expenditure. Capital expenditure is expenditure relating to the purchase of non-current assets which are not for resale and are used within the business. Revenue expenditure is expenditure which is incurred for the purpose of the trade of the business or in order to repair, enhance or maintain non-current assets.

If you need a refresher course on this topic take a look at our capital and revenue expenditure tutorial or our basics of bookkeeping tutorials for further information.

Start the Capital or Revenue Expenditure Quiz

Identify whether each of the following types of expenditure are classified as capital or revenue expenditure. Click on an answer to reveal whether its Right! or Wrong

1. Is annual depreciation of plant and equipment capital or revenue expenditure?
Wrong
Right!
2. Identify between capital and revenue expenditure the purchase of new production machinery?
Right!
Wrong
3. Identify between capital and revenue expenditure the cost of equipment repairs?
Right!
Wrong

 

4. Is customs duty on the purchase of new equipment capital or revenue expenditure?
Right!
Wrong
5. Is production wages a revenue or capital expenditure?
Wrong
Right!
6. Are freight costs for the purchase of inventory capital or revenue expenditure?
Right!
Wrong
7. The installation costs of a new factory machine are classified as capital or revenue expenditure?
Wrong
Right!
8. The costs of repairs to equipment are classified as capital or revenue expenditure?
Right!
Wrong
9. Identify between capital and revenue expenditure the purchase of a new computer?
Right!
Wrong
10. Legal fees relating to the purchase of new head office premises for the business are classified as revenue or capital expenditure?
Right!
Wrong

Try Another Double Entry Bookkeeping Quiz

The capital or revenue expenditure quiz is one of many of our online quizzes which can be used to test your knowledge of double entry bookkeeping, discover another at the links below.

Last modified October 3rd, 2019 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.

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