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UI Post-UTME Financial Accounting 2024 (Model questions) Question 15

Question 15

Capital and Revenue Expenditure

Money spent on buying of plots of land by a firm is

  1. A.Capital Expenditure
  2. B.Capital receipts
  3. C.Revenue Expenditure
  4. D.Revenue Receipts
Show the answer and explanation

Answer: A (Capital Expenditure)

Explanation

Land is a fixed asset, so buying it is capital expenditure.