Q3. Classify the following items as either revenue or capital expenditure: Annual service costs for a courier firm’s fleet of vans.Replacement of rubber tread on a printing press with a plastic one that has resulted in the useful economic life of the printing press being extended by three years.A new bicycle purchased by a newsagent for use by the newspaper delivery boy.

Revenue Expenditure: For example, rent costs, energy bills, salaries, insurance costs, commission…

Answered: Q3. Classify the following items as…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 8Q

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Q3. Classify the following items as either revenue or capital expenditure:

Annual service costs for a courier firm’s fleet of vans.
Replacement of rubber tread on a printing press with a plastic one that has resulted in the useful economic life of the printing press being extended by three years.
A new bicycle purchased by a newsagent for use by the newspaper delivery boy.

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