Expense Classification

FA – Nov 2011 – L1 – SA – Q6 – Accounting Concepts

This question tests the conditions under which an expense is classified as revenue expenditure.

Question

An expense will be classified as revenue expenditure if it
A. Contributes to the operating income of the business
B. Adds to or reduces the capital of the business
C. Necessitates the injection of additional capital
D. Adds to or improves the value of fixed assets
E. Necessitates calling a general meeting for shareholders’ approval

Answer

Find Related Questions by Tags, levels, etc.

Tags: Expense Classification, Revenue Expenditure
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2011

FA – Nov 2020 – L1 – SA – Q14 – Accounting for Property, Plant, and Equipment (IAS 16)

Identifies an item to be classified as capital expenditure.

Question

Which of the following should be classified as capital expenditure?
A. Penalty paid to a supplier for late payment in respect of plant supplied
B. Interest payable on loan used exclusively for the production of self-constructed PPE
C. Staff training cost on the use of equipment
D. Legal fees on debt recovery
E. Bonuses to production operatives

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Expenditure, Expense Classification
Level: Level 1

Topic: Accounting for Property, Plant, and Equipment (PPE) IAS 16
Series: NOV 2020

FA – Nov 2011 – L1 – SA – Q6 – Accounting Concepts

This question tests the conditions under which an expense is classified as revenue expenditure.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Expense Classification, Revenue Expenditure
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2011

FA – Nov 2020 – L1 – SA – Q14 – Accounting for Property, Plant, and Equipment (IAS 16)

Identifies an item to be classified as capital expenditure.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Expenditure, Expense Classification
Level: Level 1

Topic: Accounting for Property, Plant, and Equipment (PPE) IAS 16
Series: NOV 2020

Question Tag: Expense Classification

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

FA – Nov 2011 – L1 – SA – Q6 – Accounting Concepts

This question tests the conditions under which an expense is classified as revenue expenditure.

FA – Nov 2020 – L1 – SA – Q14 – Accounting for Property, Plant, and Equipment (IAS 16)

Identifies an item to be classified as capital expenditure.

FA – Nov 2011 – L1 – SA – Q6 – Accounting Concepts

This question tests the conditions under which an expense is classified as revenue expenditure.

FA – Nov 2020 – L1 – SA – Q14 – Accounting for Property, Plant, and Equipment (IAS 16)

Identifies an item to be classified as capital expenditure.

Our offerings

Contact Info

Customer

Get In Touch