Acca financial Accounting (FA) Study Text ac ca (FA)

What was the depreciation charge for the year ended 31 December 

20X5? 

$________ 

22

  Which of the following best explains what is meant by ‘capital 

expenditure’? 

A 

expenditure on non-current assets, including repairs and 

maintenance 

B 

expenditure on expensive assets 

C 

expenditure relating to the issue of share capital 

D 

expenditure relating to the acquisition or improvement of non-current 

assets 

23  A non-current asset was purchased at the beginning of Year 1 for $2,400 

and depreciated by 20% pa by the reducing-balance method. At the 

beginning of Year 4 it was sold for $1,200.