Accounting 0452 · IGCSE · Capital and revenue expenditure and receipts

Capital and revenue expenditure and receipts — practice question

When Mark set up a car repair business, he bought premises and equipment. Two years later, he paid $5000 to build an extension, $600 for new equipment and $750 to repaint the original premises. What will be the increase in non-current assets from these transactions (ignore depreciation)?

  • A$5000
  • B$5600
  • C$5750
  • D$6350

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI