Capital and Revenue Expenditures MCQs 2

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on July 22, 2022

This multiple choice question (MCQ) test covers capital and revenue expenditures. Test your knowledge and try to answer every question correctly.

The quiz contains 15 MCQs, each with 4 possible answers. This capital and revenue expenditures MCQs test will help you to prepare for your objective type exams and interviews, and it will also enable you to clarify the key concepts.

If you have problems with the questions, you can review the information on our capital and revenue expenditures page.

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Frequently Asked Questions

What is Capital Expenditure?

Capital Expenditures are typically one-time large purchases of Fixed Assets that will be used for revenue generation over a longer period.

What are Capital Expenditure and Revenue Expenditure examples?

Revenue Expenditures are the ongoing Operating Expenses, which are short-term expenses used to run the daily business operations.

What are Capital Expenditure and Revenue Expenditure examples?

What are Capital Expenditure and Revenue Expenditure examples?

Is Capital Expenditure an expense or asset?

Capital Expenditure is an asset. It is a long-term investment in the company, and it helps to improve the productivity and efficiency of the business. The expenditure may be for new equipment, land, or buildings. In some cases, it may also be for research and development purposes. When the Capital Expenditure is made, it increases the value of the company.

What is the main purpose of Capital Expenditure?

The main purpose of Capital Expenditure is to help the company generate more revenue in the future. It allows the company to expand its operations, improve its products and services, and become more competitive in the market. As a result, the company can earn more profits and increase its value over time.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

10 thoughts on "Capital and Revenue Expenditures MCQs 2"

    1. Bcz at last they have used the word machinery.
      All expenses on machinery till it’s usage is capital .

    2. All the expenses incurred while purchasing any assets are kept together in the assets account, so carriage, freight, clearing charges etc paid for purchase machinery to settle the assets well. So, is capital expenditures

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