Recurrent Expenditure - SS3 Accounting Past Questions and Answers - page 1
What are recurrent expenditures in accounting?
Regular and ongoing expenses incurred to keep a business running on a day-to-day basis
Expenses incurred to acquire or improve long-term assets
Expenses that remain the same regardless of the level of production or sales
Expenses that are not related to the normal course of business
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Which of the following is an example of a recurrent expenditure?
Purchase of a new manufacturing facility
Payment of salaries
Purchase of inventory
Renovation of an existing building
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How are recurrent expenditures recorded in a company's financial statements?
As an asset on the balance sheet
As a liability on the balance sheet
As an expense on the income statement
As revenue on the income statement
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Why is it important to manage recurrent expenditures effectively?
To ensure the long-term financial health of a business
To acquire long-term assets
To increase the value of the business
To decrease the value of the business
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Which of the following is NOT an example of recurrent expenditure?
Rent
Salaries and wages
Purchase of new equipment
Office supplies
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How do businesses manage recurrent expenditures?
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Why is it important for businesses to monitor their recurrent expenditure?
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