What this practice covers
These questions are drawn from past CIE 0452 Accounting papers and filtered to capital and revenue expenditure and receipts. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising practice questions →
What examiners see students get wrong here
These are the errors that cost marks on capital and revenue expenditure and receipts, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Capitalising insurance, licence, fuel or training on a new asset.
- Treating the proceeds of an asset sale as sales revenue.
- Saying the trial balance would reveal the error.
- Giving the effect on profit and forgetting the effect on assets.
- Treating a loan received as income.
- Forgetting that overstating an asset also overstates future depreciation.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Capital and revenue expenditure and receipts revision notes.