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SSC Financial and Cost Accounting P-1 QUESTION #6102
Question 1

A business owner purchased a delivery vehicle and made these payments:

ItemAmount ($)
Delivery vehicle purchase price28,000
Fitting shelves inside the vehicle3,000
Painting business logo on the vehicle2,000

What was the total capital expenditure?

  • $28,000
  • $30,000
  • $31,000✔️
  • $33,000
Correct Answer Explanation

Option C ($31,000) is correct.

Capital expenditure includes costs that bring a non-current asset into use or improve its capacity:

  • Vehicle purchase price: $28,000
  • Fitting shelves (improves functionality): $3,000

Total CapEx = $31,000

Painting the logo ($2,000) is revenue expenditure — a marketing cost that does not add to the asset's useful life.