1. State whether each of the below is Capital Expenditure or RevenueExpenditure.Purchase of new delivery vehiclePayment of an invoice for advertisingа.b.Costs of clearing the site ready for anextension to the factory buildingSignwriting on the outside of the newdelivery vehiclesRedecoration of the officeс.d.е.f.Payment of delivery driver's wagesg.Fuel for delivery vehiclesh.Fitting of shelving in delivery vehicle

Capital expenditure includes all those expenditure which are require high amount of cash outflow and…

1. State whether each of the below is Capital Expenditure or Revenue Expenditure. Purchase of new delivery vehicle а. b. Payment of an invoice for advertising Costs of clearing the site ready for an С. extension to the factory building d. Signwriting on the outside of the new delivery vehicles Redecoration of the office е. f. Payment of delivery driver's wages g. Fuel for delivery vehicles Fitting of shelving in delivery vehicle h.

1. State whether each of the below is Capital Expenditure or Revenue Expenditure. Purchase of new delivery vehicle а. b. Payment of an invoice for advertising Costs of clearing the site ready for an С. extension to the factory building d. Signwriting on the outside of the new delivery vehicles Redecoration of the office е. f. Payment of delivery driver's wages g. Fuel for delivery vehicles Fitting of shelving in delivery vehicle h.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 2EB: For the following descriptions, state whether the cost is controllable or uncontrollable by...

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1. State whether each of the below is Capital Expenditure or Revenue Expenditure.a. Purchase of new delivery vehicleb. Payment of an invoice for advertisingc. Costs of clearing the site ready for an extension to the factory buildingd. Signwriting on the outside of the new delivery vehiclese. Redecoration of the officef. Payment of delivery driver’s wagesg. Fuel for delivery vehiclesh. Fitting of shelving in delivery vehicle
: State with reasons whether following Expenses/ Receipts of a Foam manufacturing factory are of Capital or Revenue nature; 1) Rent paid in advance to owners of building 2) Carriage expenses paid to suppliers 3)Purchases new supply trucks 4) Replacement of old machinery with new ones 5) Commission paid to marketing agents
Within the accounting system of a group of companies, the following types of expenses are incurred. Complete the following table by placing each expense in the correct cost classification. Reference Number Types of expenses 1 Costs of opening a new facility 2 Costs of conducting business in a new location or with a new class of customer (including costs of staff training) 3 Costs of site preparation 4 Costs of testing whether the asset is functioning properly 5 Electrical installation costs 6 Costs of dismantling and removing the item and restoring the site on which it is located 7 Administration costs 8 Import duty of an imported machine 9 Purchase of a five-year maintenance contract with plant 10 Legal fees for sales and purchase agreement for acquisition of land 11 Interest on loan on a self constructed property after the asset is ready for use 12 Architect fees incurred for self constructed building 13 General overheads incurred for self…
State whether each of the below is Capital Expenditure or Revenue Expenditure. 1 Purchase of new delivery vehicle 2 Payment of an invoice for advertising 3 Costs of clearing the site ready for an extension to the factory building 4 Signwriting on the outside of the new delivery vehicles 5 Redecoration of the office 6 Payment of delivery driver’s wages 7 Fuel for delivery vehicles 8 Fitting of shelving in delivery vehicle 9 Clay for making the pets toys 10 Wages of sales staff 11 Purchase of potters wheel for use in the business 12 Installation costs for the potters wheel 13 Wages os staff operating the potters wheel 14 Redecoration of store room 15 Payment of extra wages to own staff for fitting the alarm and cctv 16 Payment of architect fees for designing the proposed new shop 17 Purchase of new telephones system for…
For each of the following, identify which expense recognition approach should be used to recognize thecost as expense.a. The cost of producing a productb. The cost of advertisingc. The cost of monthly rent on the office buildingd. The salary of an office employeee. Depreciation on an office building
Identify which of the following is classified as a revenue expenditure a. Cost of purchase of Machine b. Expense incurred for repairing the machine c. Installation expense paid for fixing the machine d. Import duty paid for importing the machine
Identify which of the following is classified as a revenue expenditure a. Installation expense paid for fixing the machine b. Cost of purchase of Machine c. Expense incurred for repairing the machine d. Import duty paid for importing the machin
(b) Classify the items listed below either as capital or revenue expenditure. Fittings partition in a new shop; Carriage on returns outwards; Cost of weighing machine in a retail shop; Repairs to office safe; Legal costs of collecting debts; Legal costs of building materials for a new office building; Carriage costs of building materials for a new office building; Purchase of an extra motor vehicle for distributor of soda and beer; Cost of paint for repainting the hospital wards from green to blue; Cost of paying for registration number plates of a new motor vehicle; Cost of replacing registration number plates of a motor vehicle;
Assign each of the following expenses to either the machine cost pool or the factory cost pool: A. property taxes B. heat and air-conditioning C. electricity, machines D. plant depreciation E. electricity, plant F. machine maintenance wages
The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. Instructions 1. Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Indicate receipts by an asterisk. Identify each item by letter and list the amounts in columnar form, as follows: 2. Determine the amount debited to Land, Land Improvements, and Building. 3. The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation. 4. What would be the effect on the current years income statement and balance sheet if the cost of filling and grading land of 12,000 [payment (i)] was incorrectly classified as Land Improvements rather than Land? Assume that Land Improvements are depreciated over a 20-year life using the double-declining-balance method.
For the following descriptions, state whether the cost is controllable or uncontrollable by responsibility center managers. A. advertising for a merchandiser B. corporate income taxes C. office supplies for a merchandiser D. donations to the Salvation Army E. insurance for delivery vehicles
Q2. Categorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem. a. Preparing the weekly payroll for manufacturing personnel b. Releasing raw materials for use in the manufacturing cycle c. Recording the receipt of payment for goods sold d. Recording the order placed by a customer e. Ordering raw materials f. Determining the amount of raw materials to order?