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Questions and Answers
Which type of expenditure is a long-term investment that provides future benefits?
Which type of expenditure is a long-term investment that provides future benefits?
- Financial Expenditure
- Revenue Expenditure
- Operating Expenditure
- Capital Expenditure (correct)
What is an example of Capital Expenditure?
What is an example of Capital Expenditure?
- Renovating an existing building
- Purchasing a new building (correct)
- Paying rent for an existing building
- Buying office supplies
What distinguishes Revenue Expenditure from Capital Expenditure?
What distinguishes Revenue Expenditure from Capital Expenditure?
- Expense for expanding business operations
- Short-term expense for daily operations (correct)
- Long-term investment for future benefits
- One-time payment for a major asset
Which type of expenditure results in the formation of new assets for the company?
Which type of expenditure results in the formation of new assets for the company?
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What do Revenue Receipts add to the company?
What do Revenue Receipts add to the company?
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Which type of expenditure is a short-term expense necessary for daily operations?
Which type of expenditure is a short-term expense necessary for daily operations?
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What do Capital Receipts do to the net worth of the business?
What do Capital Receipts do to the net worth of the business?
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What do revenue receipts create for the company?
What do revenue receipts create for the company?
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