Accounting · Capital and Revenue Expenditure
With reference to capital and revenue expenditure, which of the following options is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Labor paid to construct the building is a capital expenditure; The repair expenditure of the building is a revenue expenditure.✓
- 2Wages paid for building construction is a revenue expenditure; Cost of goods sold is a capital expenditure.
- 3Cost of goods sold is a revenue expense; Salary is a capital expenditure.
- 4Purchase of investments is a revenue expenditure; Expenditure on advertisement is capital expenditure.
Correct answer
Labor paid to construct the building is a capital expenditure; The repair expenditure of the building is a revenue expenditure.
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