Question:Which of the following would be part of the capital expenditure budget?
A. Purchases of raw materials
B. Replacement of existing machinery
C. Purchase of a new factory premises
D. Refurbishment of existing factory premises
The correct answers are:Purchase of a new factory premises, Replacement of existing machinery and Refurbishment of existing factory premises.
Purchases of raw materials would be classed as revenue expenditure, not capital expenditure. The others are capital expenditure.
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