0452.4.1.01 — distinguish between and account for capital expenditure and revenue expenditure: past paper questions
Real questions on 0452.4.1.01 — distinguish between and account for capital expenditure and revenue expenditure
The newest 20 of 28 written questions. Open one to see it on the real paper.
- 0452/01 · Specimen 2027 · Q3[1]
Which of the following is NOT an example of capital expenditure?
See it on the paper → - 0452/21 · May/June 2026 · Q3a[4]
details $ date details $ date Yasmin and Zafran Rent expense account (a) Prepare the rent expense account for the year ended 31 March 2026. Balance the account and bring down the balance at 1 April 2026. Yasmin and Zafran are considering obtaining a long-term loan to buy the storeroom which they are now renting. REQUIR...
See it on the paper → - 0452/21 · May/June 2026 · Q3b[5]
Advise the partners whether or not they should take out a long-term loan in order to buy the storeroom. Justify your answer by providing points both for and against doing this. The partnership agreement provides for: • • • • • interest on partners’ loans of 7.5% per annum interest on drawings of 5% per annum interest o...
See it on the paper → - 0452/21 · May/June 2026 · Q3c[7]
date details $ date details $ Yasmin Current account (c) Prepare Yasmin’s current account for the year ended 31 March 2026. Balance the account and bring down the balance at 1 April 2026. The credit balances on Zafran’s accounts at 31 March 2026 were: $ 35 000 5 600 capital account current account REQUIRED
See it on the paper → - 0452/22 · February/March 2026 · Q2d[2]
Complete the table by placing a tick (✓) to show whether each item is capital expenditure or revenue expenditure. cost cost of vehicle capital expenditure $ revenue expenditure 19 000 fuel (petrol) 85 insurance for one year 420 delivery of the vehicle 150
See it on the paper → - 0452/22 · February/March 2026 · Q2f[5]
Advise Samir whether or not he should buy the new shop fittings. Justify your answer by providing points for and points against buying the new shop fittings.
See it on the paper → - 0452/23 · October/November 2025 · Q5a(i)[1]
capital expenditure
See it on the paper → - 0452/21 · May/June 2024 · Q3d[5]
Advise Zahra and Panya whether or not they should go ahead with the 100% increase in the amount spent on advertising. Justify your answer by providing two points in favour and two points against this increase.
See it on the paper → - 0452/21 · May/June 2024 · Q4c[3]
Complete the table by placing a tick (✓) to indicate whether each amount of spending on the new inventory storage space is capital expenditure or revenue expenditure.
See it on the paper → - 0452/21 · May/June 2024 · Q4d[7]
Complete the following table.
See it on the paper → - 0452/22 · February/March 2024 · Q4d[5]
Advise Sara whether or not she should purchase the delivery vehicle. Justify your answer by providing two advantages and two disadvantages of purchasing the delivery vehicle.
See it on the paper → - 0452/21 · October/November 2023 · Q3e[5]
Advise Logan whether he should purchase business premises using a long-term bank loan. Justify your answer with advantages and disadvantages of purchasing business premises using a long-term bank loan.
See it on the paper → - 0452/21 · May/June 2023 · Q2d[4]
Place a tick (3) in the correct box below to indicate whether each cost is capital expenditure or revenue expenditure.
See it on the paper → - 0452/21 · October/November 2022 · Q1d[3]
Explain to Anika the difference between capital expenditure and revenue expenditure. Why is this difference between the two important when preparing the financial statements?
See it on the paper → - 0452/23 · October/November 2022 · Q1d[3]
Explain to Anika the difference between capital expenditure and revenue expenditure. Why is this difference between the two important when preparing the financial statements?
See it on the paper → - 0452/23 · October/November 2022 · Q4d[5]
Evaluate the two options and advise the company on which one they should choose. Justify your answer.
See it on the paper → - 0452/23 · October/November 2022 · Q5e[5]
Advise NT on which option he should introduce. Justify your answer.
See it on the paper → - 0452/23 · May/June 2022 · Q4b(i)[2]
Complete the table by placing a tick (✓) to show how Nala should treat each item of her expenditure. Capital expenditure Revenue expenditure Computer printer paper Computer equipment Installation of computer equipment Motor vehicle Insurance of motor vehicle Delivery of motor vehicle (b) (ii) Explain how the materialit...
See it on the paper → - 0452/23 · October/November 2021 · Q2a[4]
Complete the table by inserting a tick (3) to show how each item of expenditure should be classified. The first one has been completed as an example. Capital expenditure Revenue expenditure 3 Building new extension to warehouse Rates on new extension Carriage costs for roof tiles for new extension Legal costs for new e...
See it on the paper → - 0452/23 · October/November 2021 · Q2b[5]
Advise Jas whether she should rent or purchase a warehouse. Justify your answer. An extract from Jas’s statement of financial position at 31 December 2019 showed the following: Cost Accumulated depreciation $ 77 625 $ 115 000 Fixtures Net book value $ 37 375 During the year ended 31 December 2020 the following transact...
See it on the paper →
What examiners said
Comprehensive responses • An understanding of the difference between capital and revenue expenditure enabled candidates to respond accurately. Limited responses • Not having a thorough understanding of the difference between capital and revenue expenditure resulted in some of the items being incorrectly classified (especially delivery cost and insurance).
— Examiner report, February/March 2026, 0452/22 Q2(d) (Cambridge)
Comprehensive responses • The advantages and disadvantages to the trader of purchasing new shop fittings were discussed in a logical manner. • There was a clear statement advising the trader on what action he should take. Limited responses • Candidates did not make use of all the information provided such as the life expectancy of the original fittings and the fact that the trader had recently sp...
— Examiner report, February/March 2026, 0452/22 Q2(f) (Cambridge)
A table had to be completed to indicate which items in a list of payments represented capital expenditure and which represented revenue expenditure. Most candidates earned at least half of the available marks.
— Examiner report, May/June 2023, 0452/21 Q2(d) (Cambridge)
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