Question 4 (20 marks) Consider the following list of expenses incurred by a company:

• a. Purchase of a motor car

  b. Claim for a meal

  c. Purchase of shares in a supplier

  d. Purchase of a new computer

  e. Payment for hotel accommodation

  f. Installation cost for server

  g. Purchase of raw materials

  h. Repair of motor vehicles

  i. Purchase of new stationery

  j. Payment of an insurance premium

  k. Wages

  l. Purchase of a new plot of land.

  Examine this list and determine if each expense is revenue or capital expenditure and give an explanation for each.

Answer rating: 100% (QA)

A Purchase of motor car Capital expenditure The motor car is expected to be used more than a year B ... View the full answer