Which of the Following Statements Is Correct

question 3

Multiple Choice

Which of the following statements is correct?

• A) Buying new premises is a revenue expenditure
• B) Buying a new car is capital expenditure
• C) The cost of using a car is a capital expenditure
• D) Statements A and B are both correct

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Definitions:

Satisfaction

The fulfillment of one's needs or the pleasure derived from consuming goods or services.

Consuming It

Pertains to the act of using up resources or products to satisfy needs or desires.

Ability

The possession of the means or skill to do something.

Satisfy Wants

The fulfillment of human desires or needs through the consumption of goods and services.