JAMB Accounting 2014 Objective — Question 43

Question 43 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2014 Objective paper, with the correct answer and a full explanation.

The expenses incurred in purchasing a vehicle is a

A. revenue expenditure
B. capital expenditureCorrect
C. recurrent expenditure
D. concurrent expenditure

Explanation

The expenses will be added to the cost of the asset and thus form part of the capital expenses since it does not recur.

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