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Expenditures

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Expenditures

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 28, 2021 at 8:11 am #639282
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    If we are having business of Cars.
    Cars on display for business (not for sale purposes) is capital expenditure or revenue expenditure?

    Actually, ACCA try to examine very tricky things that is why asking from you professor.

    October 28, 2021 at 8:51 am #639293
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54724
    • ☆☆☆☆☆

    Why would a business have a car simply for display???? If that was the case then it would be capital expenditure.

    If, on the other hand, the business is a car dealer and so they are in the business of buying and selling cars, then they are revenue expenditure (purchases). (I do actually mention this in my lectures).

    October 28, 2021 at 8:56 am #639295
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Yes professor, I mean to say that we are car dealer.
    Thank you again. 🙂

    October 28, 2021 at 8:59 am #639297
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54724
    • ☆☆☆☆☆

    You are welcome.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Expenditures’ is closed to new replies.

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