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WAEC Financial Accounting 2006 Question 41

Question 41

Capital and Revenue Expenditure

Which of the following is not a revenue expenditure?

  1. A.Payment of salaries
  2. B.Payment for advertisement
  3. C.Purchases of motor vehicle
  4. D.Purchases of goods.
Show the answer and explanation

Answer: C (Purchases of motor vehicle)

Explanation

A motor vehicle is a fixed asset: capital expenditure.