The newest 19 of 19 written questions. Open one to see it on the real paper.
capital expenditure
See it on the paper →revenue expenditure
See it on the paper →capital receipts
See it on the paper →revenue receipts.
See it on the paper →Complete the table by indicating with a tick (3) how the following items of income and expenditure will be classified. item capital expenditure revenue expenditure capital receipt revenue receipt delivery charges for new office equipment repairs to the roof of an existing building painting of a new extension to the fac...
See it on the paper →Mo’s expenses are lower than Barry’s.
See it on the paper →Advise Ben whether he should employ a book-keeper. Justify your answer with two advantages and two disadvantages of employing a book-keeper. Ben has reviewed the age and level of his trade receivables and believes he should provide for possible doubtful debts. REQUIRED:
See it on the paper →Advise Jenny whether she should contribute additional capital to pay off her bank overdraft. Justify your answer. Question 2 is on page 6.
See it on the paper →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. $ Painting the walls of the storage area 600 Shelving for the storage area 2115 Installation of the shelving 460 Light fittings for storage area 620 Ligh...
See it on the paper →Prepare the journal for Shakir’s opening entries at 1 September 2023. A narrative is not required. Shakir Journal Date Details Debit $ Credit $
See it on the paper →Place a tick (3) in the correct box below to indicate whether each cost is capital expenditure or revenue expenditure. Capital expenditure Revenue expenditure Legal fees for obtaining permission to build the extension Building costs for the extension Insurance for the office Painting the office extension Office calenda...
See it on the paper →Advise Salman whether he should convert some of his premises from office use to factory use. Justify your answer by providing arguments for and against this conversion of office space into additional factory capacity.
See it on the paper →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 →Complete the table by placing a tick (✓) to show the effect of the error on capital and on liabilities. overstated understated Effect on capital Effect on liabilities Nala has charged depreciation on her shop fittings at 25% per annum using the reducing balance method. This year she is considering changing this to 10%...
See it on the paper →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 →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 →Advise Carlos which option he should select. Justify your answer by providing one advantage and one disadvantage of each option.
See it on the paper →Hire new non-current assets instead of purchasing them.
See it on the paper →State why it is not appropriate to use the general reserve to repay the bank overdraft.
See it on the paper →An opening journal entry was required. Most candidates correctly debited the assets and credited the liabilities. A very common error was to completely omit the capital.
— Examiner report, October/November 2023, 7707/23 Q1(a)(i) (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, 7707/21 Q2(d) (Cambridge)
Candidates were required to advise a manufacturer whether he should convert some of the office space into additional factory space. Many candidates were unable to offer more than one advantage and one disadvantage. Many did understand that the factory output could be increased but did not always appreciate that this may not be able to be sold. Increased storage space, lack of meeting rooms and ang...
— Examiner report, May/June 2023, 7707/21 Q4(c) (Cambridge)
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