Which of the Following Statements Is Correct

question 31

Multiple Choice

Which of the following statements is correct?

• A) The distinction between capital expenditure and revenue expenditure is always clear
• B) Sometimes the distinction between capital expenditure and revenue expenditure is not clear
• C) Buying a new car is revenue expenditure
• D) Statements B and C are both correct

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Definitions:

Loan

A quantity of money that is lent and is supposed to be repaid along with an additional amount as interest.

Compounded Monthly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a monthly basis.

Monthly Savings

The amount of money saved each month after all expenses have been paid.

Interest Rate

The cost of borrowing money or the return on investment, typically expressed as a percentage of the principal.