Multiple choice

Capital expenditures are shown on

  1. debit side of profit and loss account

  2. credit side of profit and loss account

  3. assets side of balance sheet

  4. liabilities side of balance sheet

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Capital expenditures are made on assets. So, they are shown accordingly in balance sheet. Revenue expenses are shown on the debit side and revenue income on the credit side of profit and loss account. Capital receipts are shown on the liabilities side of balance sheet.