passwella.
Menu

JAMB Principles of Accounts 2009 Question 48

Question 48

Capital and Revenue Expenditure

Replacement and renewal of fixed assets are

  1. A.revenue receipt
  2. B.capital receipt
  3. C.capital expenditure
  4. D.revenue expenditure
Show the answer and explanation

Answer: C (capital expenditure)

Explanation

Buying a fixed asset, even as a replacement, is capital expenditure.