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O-LevelAccountingAccounting procedures7707/11 · Oct/Nov 2018 · Q121 Mark

Leroy has an engineering business. On 31 May he received an invoice from AB Machines showing the following: cost of replacement parts for machine cost of repairs to machine cost of machine cost of installation of machine Which costs are capital expenditure in Leroy's books?

Amachine, installation
Bmachine only
Creplacement parts, machine
Dreplacement parts, repairs, installation

✓ Correct answer

A: machine, installation

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About this question

Topic
Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, Oct/Nov 2018 Paper 1 Variant 1, question 12.

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