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UI Post-UTME Financial Accounting 2025 (Model questions) Question 8

Question 8

Capital and Revenue Expenditure

Which of the following are examples of capital expenditure?
I. Purchase of a delivery van
II. Repainting office walls
III. Extension of the factory building
IV. Annual insurance premium

  1. A.II and IV only
  2. B.I and III only
  3. C.I, II and III only
  4. D.All of the above
Show the answer and explanation

Answer: B (I and III only)

Explanation

Buying a van and extending a building add lasting assets; repainting and insurance are running (revenue) costs.