Capital Expenditure - SS3 Accounting Past Questions and Answers - page 1

Expenses incurred to acquire or improve long-term assets

Expenses that vary with the level of production or sales

Expenses that remain the same regardless of the level of production or sales

Expenses that are not related to the normal course of business

To allocate the cost of the asset over its useful life

To record the expense immediately

To increase the value of the asset

To decrease the value of the asset

Purchase of office supplies

Payment of salaries

Purchase of a new manufacturing facility

Advertising expenses

They improve productivity and efficiency

They increase revenue

They reduce expenses

They are not important for growth

Revenue expenditures are expensed immediately, while capital expenditures are depreciated over their useful life

Revenue expenditures are related to long-term assets, while capital expenditures are related to short-term assets

Revenue expenditures are optional, while capital expenditures are mandatory

Revenue expenditures are not recorded in the accounting system, while capital expenditures are recorded in the accounting system