A-LevelAccountingAccounting for non-current assets9706/12 · Feb/Mar 2021 · Q31 Mark

Which item is not included as part of the capital cost of a new machine?

Acost of delivering the machine to the factory

Bcost of installing the new machine

Cinterest on a loan used to buy the machine

Dinvoice price of the machine

✓ Correct answer

C: interest on a loan used to buy the machine

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Accounting for non-current assets and see which topics are most likely to come up next.

About this question

Topic: Accounting for non-current assets, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2021 Paper 1 Variant 2, question 3.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Accounting questions

Accounting for non-current assetsFeb/Mar 20201m

The following costs for a business relate to a newly purchased machine. 1 alterations to the factory building to inst…

Accounting for non-current assetsFeb/Mar 20201m

The following information is available. freehold premises at cost 125000 provision for depreciation of freehold premi…

Accounting for non-current assetsFeb/Mar 20201m

A business has a year end of 31 December. It purchased a motor vehicle on 1 January 2017 for $15000. The motor vehicl…

Preparation of financial statementsFeb/Mar 20191m

L and M are in partnership sharing the profits equally. No goodwill account is maintained in the accounts. N joins th…

Preparation of financial statementsFeb/Mar 20191m

During the year a business issued $1 ordinary shares at $1.20 each. The directors proposed a final dividend at the en…

Preparation of financial statementsFeb/Mar 20191m

A company has ordinary share capital of $250000. The ordinary shares have a nominal value of $0.25 each. A rights iss…

← Browse all past-paper questions