State the type of expenditure, capital or revenue, incurred in the following transactions (a) Break down van purchased by a garage (b) Repairs to a fruiterers van (c) The cost of installing a new machine (d) Cost of hiring refrigeration plant in a butchers shop (e) Twelve dozen sets of cutlery, pur...

Sure Id be happy to help you classify the types of expenditures as either capital or revenue for each of the transactions a Breakdown van purchased by a garage Type Capital Expenditure Explanation The ...

State the type of expenditure, capital or revenue, incurred in the following transactions (a) Break-down van purchased

Question:

State the type of expenditure, capital or revenue, incurred in the following transactions

(a) Break-down van purchased by a garage.

(b) Repairs to a fruiterer’s van.

(d) Cost of hiring refrigeration plant in a butcher’s shop.

(e) Twelve dozen sets of cutlery, purchased by a catering firm for a new dining-room.

(f) A motor vehicle bought for re-sale by a motor dealer.

(g) The cost of acquiring patent rights.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Frank Woods Business Accounting Volume 1

ISBN: 9780273681496

10th Edition

Authors: Frank Wood, Alan Sangster

See More Books

Question Posted: Aug 19, 2023 06:10 AM

See More Questions

For each of the following items, enter the correct letter to the left to show the type of expenditure. Use thefollowing: Type of Expenditure Capital expenditure Revenue expenditure Neither...
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
State the type of experiment being conducted in the following situations. In each case, identify the potential threat to internal and external validity. a. A major distributor of office equipment is...
You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset: What is the Sharpe ratio, Treynor ratio, and Jensens alpha for eachportfolio?...
The following is an excerpt from a disclosure note from the 2011 annual report of Kaufman Chemicals, Inc. Kaufman reports accumulated other comprehensive income in its balance sheet as a component of...
In a recent USA TODAY/Gallup Poll, respondents favored Barack Obama over Mitt Romney in terms of likeability, 60% to 30% (Los Angeles Times, July 28, 2012). The following bar chart summarizes the...
You want to invest your savings of S$28,000 (Singapore dollar) in Singapore Government Securities (SGS) for the next 2 years. Currently, you can invest either in a security that pays interest of 7.5...
Amiras Corporation began operations on January 1, 2014, with a beginning inventory of $30,100 at cost and $50,000 at retail. The following information relates to 2014. Instructions (a) Assume Amiras...
Other than the wind speed, what factor has the most impact on the amount of power generated by a wind turbine? Swept area of rotor Turbine style Terrain Blade material.
On what principles would you distinguish between capital and revenue expenditure? Illustrate your answer by reference to the following: (a) The cost of repairs and an extension to the premises. (b)...
Indicate which of the following would be revenue items and which would be capital items in a wholesale bakery: (a) Purchase of a new van. (b) Purchase of replacement engine for existing van. (c) Cost...
The enzyme carbonic anhydrase catalyzes the reaction CO2(g) + H2O(l) HCO3(aq) + H+(aq). In water, without the enzyme, the reaction proceeds with a rate constant of at 25 oC. In the presence of the...
I need help with a pitch for a new TV series. The idea is to target a specific FAST (free, advertising supported streaming video service). I am targeting Tubi and have opted for a spy-themed series...
Suppose a Holiday Inn Hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel. Average daily room rents are $50 per room, and average variable costs are $10 for...
What is vulnerability assessment? Who is generally involved in a vulnerability assessment? If you were the CISO, what would you like to see in the vulnerability assessment report?
2. Suppose the 10-year T-bonds are currently yielding 5.8%. You are also given the following information about economic activity and ABC Corporation bonds: - Inflation premium = 3.25% Liquidity...
Keeping the global communication concepts in mind, consider any ONE media product (movies or shows such as Marco Polo on Netflix, Blood Diamond or The Last Samurai) that represent international...
What is the difference between a page and a segment?
An Atomic Energy Commission nuclear facility was established in Hanford, Washington, in 1943. Over the years, a significant amount of strontium 90 and cesium 137 leaked into the Columbia River. In a...
On 1 January 2016, F Limited commenced business selling goods on hire purchase. Under the terms of the agreements, an initial deposit of 20% is payable on delivery, followed by four equal quarterly...
Object Limited is a retail outlet selling word processing equipment both for cash and on hire purchase terms. The following information has been extracted from the books of account as at 31 August...
RJ commenced business on 1 January 2018. He sells refrigerators, all of one standard type, on hire purchase terms. The total amount, including interest, payable for each refrigerator is 300....
Following are accounts and year-end adjusted balances of Cruz Company as of December 31. Number Account Title 101 Cash 126 Supplies 128 Prepaid insurance 167 168 Equipment Accumulated...
Required information [The following information applies to the questions displayed below.] Aram's taxable income before considering capital gains and losses is $64,000. Determine Aram's taxable...
Larkspur Corporation borrowed $78,000 on November 1, 2025, by signing a $79,755, 3-month, zero-interest-bearing note. Prepare Larkspur's November 1, 2025, entry; the December 31, 2025, annual...

State the type of expenditure, capital or revenue, incurred in the following transactions (a) Break-down van purchased

Question:

Step by Step Answer:

Sure Id be happy to help you classify the types of expenditures as either capital or revenue for each of the transactions a Breakdown van purchased by a garage Type Capital Expenditure Explanation The ...View the full answer

Frank Woods Business Accounting Volume 1

Students also viewed these Business questions