Question

Purchase of furniture by a club is
(a) Capital expenditure
(b) Revenue expense
(c) Capital Receipt
(d) Revenue Receipt

Answer 1

Answer: capital expenditure

Explanation:

Answer 2

Purchase of furniture by a club is Capital expenditure (A)

Explanation:

• The expenditure of funds for an asset that is expected to provide utility to a business for more than one reporting period is called capital expenditure.
• Examples of capital expenditures are Computer equipment and Buildings (including subsequent costs that extend the useful life of a building).
• Capital expenditures includes two forms:
• acquisition expenditures and expansion expenditures.