O-LevelAccountingAccounting procedures7707/12 · May/June 2021 · Q151 Mark

Which statements about capital expenditure are correct? 1 It is money spent on day-to-day business operations. 2 It is money spent on purchasing non-current assets. 3 It is recorded in the statement of financial position. 4 It includes expenses relating to non-current assets.

A1 and 3

B1 and 4

C2 and 3

D2 and 4

✓ Correct answer

A: 1 and 3

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2021 Paper 1 Variant 2, question 15.

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