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O-LevelAccountingThe fundamentals of accounting7707/12 · Oct/Nov 2019 · Q151 Mark

What will be treated as capital expenditure?

Athe annual depreciation on office premises
Bthe cost of building an office extension
Cthe cost of repairing office equipment
Dthe purchase of a new computer for resale

✓ Correct answer

B: the cost of building an office extension

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About this question

Topic
The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, Oct/Nov 2019 Paper 1 Variant 2, question 15.

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