MGT101 Financial Accounting GDB no 1Semester FALL 2 November 2011

[Vuhelper]

Solution:

Capital expenditures are:

1. Office furniture and fixtures
2. cost of car

Revenue expenditures are:

1. Salaries
2. Insurance premium
3. Transportation charges
4. Advertisement expenses

Another Solution:

Capital expenditure
1-building
2-office furniture and fixtures

Revenue expenditure
1-Transport charges which had paid for furniture
2-Salaries have also been paid during the year2011

Another:

Capital Expense
Building for Office because if is a fixed asset and fixed assets are counted as Capital Expenses, Furniture is also treated as asset of the business

Revenue Expense
Advertisement Expense because it will generate revenue for the company, Insurance Premium because it will also payback some larger amount of money