A-LevelAccountingCapital and Revenue Expenditure/IncomeFeb/Mar 2025Paper 1 Q51 Mark
The following costs for a business relate to a newly purchased machine. 1 alterations to the factory building to install the machine 2 payment of insurance for the new machine 3 the final purchase price of the machine agreed with the supplier 4 the price of the machine before the discount from the supplier Which costs would be treated as capital expenditure?
A1, 2 and 3
B1 and 3 only
C2 and 3 only
D2 and 4
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of capital and revenue expenditure/income within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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