O-LevelAccountingAccounting principles and policies7707/12 · Oct/Nov 2021 · Q131 Mark

A trader has purchased new business premises. What are examples of capital expenditure? 1 cost of heating and lighting the new premises 2 cost of purchasing the new premises 3 legal costs of purchasing the new premises 4 office furniture purchased for use in the new premises

A1 and 2 only

B1, 2 and 4

C2, 3 and 4

D3 and 4 only

✓ Correct answer

C: 2, 3 and 4

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Topic: Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2021 Paper 1 Variant 2, question 13.

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